PDF document

- 1 -

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. b. c. d. e. f.
Description of property Date acquired Date sold Sales price Cost or other Gain or (loss)
and Idaho location (mm/dd/yyyy) (mm/dd/yyyy) basis

2. Qualifying capital gain from sale of personal residence from federal Schedule D.
Idaho address of personal residence sold 2
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. b. c. d. e.
Description of property Date acquired Date sold Pass-through Distributive share
and Idaho location (mm/dd/yyyy) (mm/dd/yyyy) entity (PTE) EIN of gain or (loss)

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.
EFO00093 08-23-2023

- 2 -

Enlarge image

                       Form CG — Instructions
                       Capital Gains Deduction                                                     2023

General Information                                        (c)  Cattle and horses held for at least 24 months, 
Use Form CG to compute an individual’s Idaho               and other livestock used for breeding held for 
capital gains deduction. The deduction is 60%              at least 12 months
of the capital gain net income included in federal         (d)  Timber held for at least 24 months
taxable income from the sale of Idaho property.            (e)  Certain sales of partnership interests qualify for 
“Capital gain net income” is the amount left over          this deduction. See Idaho Code 63-3022H(3)(f) to 
when you reduce your gains by your losses from             calculate the amount of qualifying gain, if any.
selling or exchanging capital assets.
                                                           CAUTION: Gains from the sale of stocks and 
Only capital gains from the following Idaho 
                                                           other intangibles don’t qualify.
property qualify:
                                                           If you have any capital gain in the current year and 
(a)  Real property held for at least 12 months
                                                           any capital loss carryover from a prior year, you must 
The term “real property” means land and                    reduce your capital gain by the carryover loss. Only 
         includes the following:                           losses from qualifying property can be used to reduce 
         1) Qualified conservation easements               your capital gain. The Idaho capital gains deduction 
            transferred to a qualified organization as     can’t exceed the capital gain net income reported on 
            described in sections 2031(c)(8)(B) and        the federal return. Gains treated as ordinary income 
            170(h) of the Internal Revenue Code            don’t qualify for the deduction.
         2) Grazing permits or grazing leases 
                                                           Distributive Share of Gain or Loss from 
            issued by the U.S. Forest Service, the 
                                                           S Corporations, Partnerships, Trusts, and Estates 
            Bureau of Land Management, or the 
                                                           (Pass-through Entity)
            Idaho Department of Lands, but only if 
            the grazing permit or grazing lease was        Who is eligible for a capital gains deduction?
            transferred at the same time as the “base      Capital gain from qualifying property of pass-through 
            property”                                      entities is eligible for the Idaho capital gains deduction 
         3) Depreciable real property as described in      on an individual return. Pass-through entities that pay 
            section 1250(c) of the Internal Revenue        the tax for an individual can’t claim a capital gains 
            Code, but only if that property was            deduction. 
            transferred in perpetuity and the transfer     How do pass-through entities report the gain or 
            was required to be in writing according to     loss to a pass-through owner?
            Idaho Code section 9-503.
                                                           1.  Calculate the amount of the gain or loss for the 
(b)  Tangible personal property used in a                  owner.
revenue-producing enterprise and held for at 
                                                           2.  Enter this amount on Form ID K-1, Part VI, 
least 12 months
                                                           line 36.
A revenue-producing enterprise means:
                                                           3.  Fill in all other information, such as the type 
         1) Producing, assembling, fabricating,            of property sold, the date of the sale, and the 
            manufacturing or processing any                holding period of the property.
            agricultural, mineral, or manufactured 
                                                           4.  Send the Form ID K-1 to the owner.
            product
         2) Storing, warehousing, distributing, or         What does a pass-through owner do with the 
            selling at wholesale any products of           Form ID K-1?
            agriculture, mining, or manufacturing          The owner claims the deduction on their Idaho 
         3) Feeding livestock at a feedlot                 individual income tax return. Please refer to the 
                                                           individual tax return instructions for more information.
         4) Operating laboratories or other facilities for 
            scientific, agricultural, animal husbandry or  Note: The pass-through owner can include the holding 
            industrial research, development or testing    period of the entity when determining the holding 
                                                           period requirement for capital gains purposes.

EIN00070    08-23-2023                                                                             Page 1 of 2

- 3 -

Enlarge image

Form CG — Instructions 2023

Specific Instructions Line 5. Enter your distributive share of qualifying
Line 1. List qualifying capital gains and losses. capital gain or loss from pass-through entities. If filing
Don’t include gains and losses reported on lines 2 Form 40, enter the amount shown from Form ID K-1,
through 5. Part VI, line 36. If filing Form 43, enter the amount
of qualified gains or losses included on Form 43,
Column a Describe the type of property. Identify line 27; this is usually the amount from Form ID K-1,
the Idaho location at the date of sale. Part VI, line 36 multiplied by the percentage shown
on Form ID K-1, Part III, line 6.
Column b Identify the month, day, and year the
property was acquired. Column a Describe the type of property. Identify
the Idaho location at the date of sale.
Column c Identify the month, day, and year the
property was sold. Column b Identify the month, day, and year the
property was acquired.
Column d Enter the sales price.
Column c Identify the month, day, and year the
Column e Enter the cost or other basis. Basis
property was sold.
is computed under the appropriate
provisions of the Internal Revenue Column d Enter the Employer Identification
Code. Number (EIN) of the pass-through
entity.
Column f To compute your gain or loss,
subtract column e from column d. Column e Enter your distributive share of gain
or loss.
Line 2. Enter the taxable gain from the sale of
your Idaho home from federal Schedule D. If Line 6. Enter the total of gains and losses in column f
you’re reporting a gain that qualifies from previous for lines 1 through 4, and column e, line 5.
installment sales, see line 3.
Line 7. Enter the total qualifying capital loss carryover
Line 3. If you used federal Form 6252 to report from the prior year’s return.
the installment method for the gain on the sale of
eligible property on your federal return, compute Line 9. If line 8 is a gain, enter 60% of line 8. If line 8 is
your capital gains deduction using the current a loss, you can’t claim this deduction.
year’s taxable portion of the installment payment.
Line 10. Enter your capital gain net income included
Include federal Form 6252. Capital gain from an
in federal adjusted gross income. This is the capital
installment sale isn’t eligible for the Idaho capital
gain from federal Form 1040, line 7. If you have a
gains deduction if the property wasn’t held for the
capital loss, enter 0.
minimum holding period by the date sold.
Line 11. Compare lines 9 and 10. Enter the smaller
Line 4. Enter the eligible capital gain net income
amount here and on Form 39R, Part B, line 10 or
from federal Form 4797. Don’t include ordinary
Form 39NR, Part B, line 6. This is your Idaho capital
gains reported on federal Form 4797, Part II.
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
EIN00070 08-23-2023 Page 2 of 2

PDF file checksum: 434890331

(Plugin #1/9.12/13.0)