Idaho Capital Gains Deduction Form

In the case of wanting to individual tax gain deductions in the State of Idaho to the IRS, the following form has to be completed and submitted.

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2. Qualifying capital gain from sale of personal residenc	e from federal Schedule D.	 	 Idaho address of personal residence sold  	 _____________________________________________	 2	
  3.  Qualifying capital gain or (loss) from installment sales.  Inclu\
de federal Form 6252.    Idaho location of property sold on installment 	 ____________________________________________	 3	
  4.  Qualifying capital gain or (loss) from sales of business propert\
y.  Include federal Form 4797.	 Idaho location of business property    	 ____________________________________________	  4	
a. Description of property 	and Idaho location	b. Date acquired(mo., day, yr.)	c. Date sold(mo., day, yr.)	d. Sales price	
Social Security Number	 Name(s) as shown on return	
IDAHO CAPITAL GAINS DEDUCTION	
f. Gain or (loss)	e. Cost or other basis 	
2012	
1.  List qualifying capital gains and losses not included on lines 2 thr\
ough 5 below.	
(See instructions for qualifying Idaho property.)	EFO0009309-24-12
CGFORM	
a. Description of property and Idaho location	b. Date acquired(mo., day, yr.)	c. Date sold(mo., day, yr.)	d. Pass-Through Entity	 	(PTE) EIN	e. Distributive share of gain or (loss)	
  5.  Qualifying capital gain or (loss) from partnerships, S corporati\
ons, estates or trusts.
  6.   Add amounts in column f of line 1 and lines 2 through 4, and amounts in column e of line 5  	 .................	  6	
 
  7.  Qualifying capital loss carryover.  See instructions  	 ........................................................................\
..........	 7	
  
  8.  Net gain or (loss). Subtract line 7 from line 6 	 ........................................................................\
....................	 8	
  9.  If line 8 is a gain, multiply line 8 by 60% 	 ........................................................................\
...........................	 9	
10.  Capital gain net income included in federal adjusted gross income.  See instructions 	 .............................	 10	
11.  Enter the smaller of line 9 or 10 here and on Form 39R, Part B, line 10, or Form 39NR, Part B, line 6 	 ... 11	
Include additional schedules as needed to report all qualifying capital \
gains and losses.

Instructions for Idaho Form CG	
General Information	
Form CG is used to compute an individual's Idaho capital 
gains deduction.  The deduction is 60% of the capital gain 
net income included in federal taxable income from the sale 
of Idaho property.  Only capital gains from the following Idaho 
property qualify:
(a)    Real property held for at least 12 months, or
(b)     Tangible personal property used in a revenue-producing 	
enterprise and held for at least 12 months.  	 	
A revenue-producing enterprise means:	
   1) Producing, assembling, fabricating, manufacturing or 	
processing any agricultural, mineral or manufactured 
product; 	
   2)  Storing, warehousing, distributing or selling at 
      wholesale any products of agriculture, mining or 	
manufacturing;	
   3) Feeding livestock at a feedlot; 
	 	4)	 Operating	laboratories	or	other	facilities	for	scientific,		
agricultural, animal husbandry or industrial research, 
development or testing.	
(c)   Cattle and horses held for at least 24 months, and other 	
livestock used for breeding held for at least 12 months, 
if the owner received more than one-half of his gross 
income from farming or ranching in Idaho, or	
(d)   Timber held for at least 24 months.
NOTE: Gains from the sale of stocks, easements, 
leasehold real properties, and other intangibles do not 
qualify.
EFO0009309-24-12	
Specific	Instructions	
Line 1.    	List qualifying capital gains and losses.  Do not 	
include   gains and losses reported on lines 2 through 5.
   Column a   Describe the type of property.  Identify the Idaho 	
location at the date of sale.	
   Column b    Identify the month, day, and year the property 	
was acquired.	
   Column c   Identify the month, day, and year the property 	
was sold.	
   Column d   Enter the sales price.
   Column e   Enter the cost or other basis.  Basis is computed 	
under the appropriate provisions of the Internal 
Revenue Code.	
   Column f    Compute your gain or loss by subtracting your 	
basis (column e) from the sales price (column 
d).	
Refer	to	the	Internal	Revenue	Code	for	definitions	of	
capital assets, short-term and long-term capital gains and 
losses, computations of basis, and gain from disposition of 
depreciable property.
"Capital gain net income" means the excess of the gains from 
sales or exchanges of capital assets over the losses from 
such sales or exchanges.
A capital loss carryover from qualifying property reduces 
the current year gains from eligible property.  Losses from 
property not eligible for this deduction do not reduce gains 
from eligible property.  The Idaho capital gains deduction 
cannot exceed the capital gain net income reported on the 
federal return.  Gains treated as ordinary income do not 
qualify for the deduction.
Distributive Share of Gain or Loss From S Corporations, 
Partnerships, Trusts and Estates
Capital gain from qualifying property, described above, held 
by S corporations, partnerships, trusts and estates, is eligible 
for the Idaho capital gains deduction. 
The amount of gain or loss must be computed by the	 	
S corporation, partnership, trust or estate and provided 
to the pass-through owner on Form ID K-1, Part B, line 9. 
The deduction is claimed on the return of the individual 
shareholder,	partner	or	beneficiary.		 The	partnership,	S	
corporation, trust or estate must provide supplemental 
information	to	the	partners,	shareholders	or	beneficiaries	
with Form ID K-1 identifying the type of property sold, the 
date of sale, and the holding period of the property by the 
partnership, S corporation, trust, or estate. 
Line 2.  	Enter the taxable gain from the sale of your Idaho 	
home, from federal Schedule D.  If you are reporting a gain 
that	qualifies	from	previous	installment	sales,	see	line	3.
Line 3.	  If you used federal Form 6252 to report the 	
installment method for the gain on the sale of eligible property 
on your federal return, compute your capital gains deduction 
using the current year's taxable portion of the installment 
payment.  Include federal Form 6252.  Capital gain from 
an installment sale is not eligible for the Idaho capital gains 
deduction if the property was not held for the minimum 
holding period by the date sold. 
Line 4.  	Enter the eligible capital gain net income from federal 	
Form 4797.  Do not include ordinary gains reported on federal 
Form 4797, Part II.
Line 5.	  Enter your distributive share of qualifying capital gain 	
or loss from partnerships, S corporations, trusts and estates.  
If	filing	form	40,	enter	the	amount	shown	from	Form	ID	K-1,	
Part	B,	line	9.		If	filing	Form	43,	enter	the	amount	of	qualified	
gains or losses included on Form 43, line 27; which, is usually 
the amount from Form ID K-1, Part B, line 9 multiplied by 
percentage shown on Form ID K-1, Part A, line 1.

Specific	Instructions	continued	
EFO00093p309-24-12	Page 2	
   Column a   Describe the type of property.  Identify the Idaho 	
location at the date of sale.	
   Column b    Identify the month, day, and year the property 	
was acquired.	
   Column c   Identify the month, day, and year the property 	
was sold.	
   Column d   Enter the EIN of the pass-through entity.
   Column e   Enter your distributive share of gain or loss.
Line 6.  Enter the total of gains and losses in column f for 
lines 1 through 4, and column e, line 5.  	
Line 7.  Enter the total qualifying capital loss carryover from 
the prior year's return.
Line 9.  If line 8 is a gain, enter 60% of line 8.  If line 8 is a 
loss, you cannot claim this deduction.
Line 10.  Enter your capital gain net income included in 
federal adjusted gross income.  This is the capital gain from 
federal Form 1040, line 13.  If you have a capital loss, 	 	
enter 0.  
Line 11.  Compare lines 9 and 10.  Enter the smaller amount 
here and on Form 39R, Part B, line 10, or Form 39NR, Part 
B, line 6.  This is your Idaho capital gains deduction.