SB 1575 - Current law authorizes an income tax deduction for 100% of income reported as a capital gain for federal income tax purposes. This act provides that depreciation that has been deducted for federal tax purposes but recovered upon the sale of the asset, and thus treated as ordinary income for federal tax purposes, shall be considered a capital gain and excluded from income tax for state tax purposes. (Section 143.121) The act also applies such capital gains tax provisions to the taxable income of a resident estate or trust. (Section 143.341)
This act is identical to HB 2945 (2026).
JOSH NORBERG