Section 35.01.01.173 - IDAHO CAPITAL GAINS DEDUCTION - PASS-THROUGH ENTITIESSection 63-3022H, Idaho Code
01.In General.a. Qualified property held by an S corporation, partnership, trust, or estate may be eligible for the Idaho capital gains deduction. The deduction is allowed only on the return of an individual shareholder, individual partner, or individual beneficiary.b. Partnerships, S corporations, trusts, and estates that pay the tax for an electing individual pursuant to Section 63-3022L, Idaho Code, are not allowed to claim a capital gains deduction.02.Multistate Entities. A nonresident shareholder of an S corporation or a nonresident partner of a partnership required to allocate and apportion income as set forth in Section 63-3027, Idaho Code, is to compute his Idaho capital gains deduction on his interest in income of that portion of the qualifying capital gains allocated or apportioned to Idaho.03.Examples. Available at Income Tax Rules Examples. a. An Idaho resident partner must report all partnership income to Idaho. As a result, his share of partnership income, including any capital gain included in apportionable income, is not limited by the apportionment factor of the partnership.b. Gains that cannot be traced back to the sale of Idaho qualifying property do not qualify for the Idaho capital gains deduction.Idaho Admin. Code r. 35.01.01.173