Idaho Idaho Capital Gains Deduction

Idaho Capital Gains Deduction
Form CG, Capital Gains Deduction and Instructions 2023
Form CG
Capital Gains Deduction

2023

Names as shown on return

Social Security number

1. List qualifying capital gains and losses not included on lines 2 through 5 below.
a.

Description of property
and Idaho location

b.

Date acquired
(mm/dd/yyyy)

c.

Date sold
(mm/dd/yyyy)

d.

e.

Sales price

f.

Cost or other
basis

Gain or (loss)

2. Qualifying capital gain from sale of personal residence from federal Schedule D.
2

Idaho address of personal residence sold
3. Qualifying capital gain or (loss) from installment sales. Include federal Form 6252.
Idaho location of property sold on installment

3

4. Qualifying capital gain or (loss) from sales of business property. Include federal Form 4797.
Idaho location of business property

4

5. Qualifying capital gain or (loss) from partnerships, S corporations, estates, or trusts.
a.

Description of property
and Idaho location

b.

Date acquired
(mm/dd/yyyy)

c.

Date sold
(mm/dd/yyyy)

d.

Pass-through
entity (PTE) EIN

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
(See instructions for qualifying Idaho property.)
Include additional schedules as needed to report all qualifying capital gains and losses.
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e.

Distributive share
of gain or (loss)

Form CG — Instructions
Capital Gains Deduction
General Information
Use Form CG 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.
“Capital gain net income” is the amount left over
when you reduce your gains by your losses from
selling or exchanging capital assets.
Only capital gains from the following Idaho
property qualify:
(a)	 Real property held for at least 12 months
The term “real property” means land and
includes the following:
1)	 Qualified conservation easements
transferred to a qualified organization as
described in sections 2031(c)(8)(B) and
170(h) of the Internal Revenue Code
2)	 Grazing permits or grazing leases
issued by the U.S. Forest Service, the
Bureau of Land Management, or the
Idaho Department of Lands, but only if
the grazing permit or grazing lease was
transferred at the same time as the “base
property”
3)	 Depreciable real property as described in
section 1250(c) of the Internal Revenue
Code, but only if that property was
transferred in perpetuity and the transfer
was required to be in writing according to
Idaho Code section 9-503.
(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

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2023
(c)	 Cattle and horses held for at least 24 months,
and other livestock used for breeding held for
at least 12 months
(d)	 Timber held for at least 24 months
(e)	 Certain sales of partnership interests qualify for
this deduction. See Idaho Code 63-3022H(3)(f) to
calculate the amount of qualifying gain, if any.

CAUTION: Gains from the sale of stocks and
other intangibles don’t qualify.
If you have any capital gain in the current year and
any capital loss carryover from a prior year, you must
reduce your capital gain by the carryover loss. Only
losses from qualifying property can be used to reduce
your capital gain. The Idaho capital gains deduction
can’t exceed the capital gain net income reported on
the federal return. Gains treated as ordinary income
don’t qualify for the deduction.
Distributive Share of Gain or Loss from
S Corporations, Partnerships, Trusts, and Estates
(Pass-through Entity)
Who is eligible for a capital gains deduction?
Capital gain from qualifying property of pass-through
entities is eligible for the Idaho capital gains deduction
on an individual return. Pass-through entities that pay
the tax for an individual can’t claim a capital gains
deduction.
How do pass-through entities report the gain or
loss to a pass-through owner?
1.	 Calculate the amount of the gain or loss for the
owner.
2.	 Enter this amount on Form ID K-1, Part VI,
line 36.
3.	 Fill in all other information, such as the type
of property sold, the date of the sale, and the
holding period of the property.
4.	 Send the Form ID K-1 to the owner.
What does a pass-through owner do with the
Form ID K-1?
The owner claims the deduction on their Idaho
individual income tax return. Please refer to the
individual tax return instructions for more information.
Note: The pass-through owner can include the holding
period of the entity when determining the holding
period requirement for capital gains purposes.
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Form CG — Instructions
Specific Instructions
Line 1. List qualifying capital gains and losses.
Don’t 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	  To compute your gain or loss,
subtract column e from column d.
Line 2. Enter the taxable gain from the sale of
your Idaho home from federal Schedule D. If
you’re 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 isn’t eligible for the Idaho capital
gains deduction if the property wasn’t held for the
minimum holding period by the date sold.
Line 4. Enter the eligible capital gain net income
from federal Form 4797. Don’t include ordinary
gains reported on federal Form 4797, Part II.

2023

Line 5. Enter your distributive share of qualifying
capital gain or loss from pass-through entities. If filing
Form 40, enter the amount shown from Form ID K-1,
Part VI, line 36. If filing Form 43, enter the amount
of qualified gains or losses included on Form 43,
line 27; this is usually the amount from Form ID K-1,
Part VI, line 36 multiplied by the percentage shown
on Form ID K-1, Part III, line 6.
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 Employer Identification
Number (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 can’t 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 7. 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.

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
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