HB 2528 — capital gains; income tax subtraction

HB2528 - 532R - IH Ver       REFERENCEHouse TITLE:Engrossed       State of Arizona House of Representatives Fifty-third Legislature Second Regular Session       HOUSE BILL 2528       AN ACT   amending sections 43‑1022 and 43‑1024, Arizona Revised Statutes;

capital gains;

income tax subtraction       State of Arizona House of Representatives Fifty-third Legislature Second Regular Session     HB 2528   Introduced by Representatives Mesnard:

Allen J, Finchem, Kern, Livingston, Mitchell, Mosley, Payne, Toma, Senator Borrelli     AN ACT   amending sections 43‑1022 and 43‑1024, Arizona Revised Statutes;

12.  To the extent not already excluded from Arizona gross income under the internal revenue code, compensation received for active service as a member of the reserves, the national guard or the armed forces of the United States, including compensation for service in a combat zone as determined under section 112 of the internal revenue code.

(a)  For taxable years beginning from and after December 31, 20172018 through December 31, 2018,2019, thirty percent of the net long‑term capital gain included in federal adjusted gross income.

(b)  For taxable years beginning from and after December 31, 20182019 through December 31, 2019,2020, thirty‑five percent of the net long‑term capital gain included in federal adjusted gross income.

(c)  For taxable years beginning from and after December 31, 20192020 through December 31, 2020,2021, forty percent of the net long-term capital gain included in federal adjusted gross income.  (d)  For taxable years beginning from and after December 31, 20202021 through December 31, 2021,2022, forty‑five percent of the net long‑term capital gain included in federal adjusted gross income.

(e)  For taxable years beginning from and after December 31, 2021,2022, fifty percent of the net long-term capital gain included in federal adjusted gross income.

For the purposes of this paragraph, a transferee that receives an asset by gift or at the death of a transferor is considered to have acquired the asset when the asset was acquired by the transferor.  If the date an asset is acquired cannot be verified, a subtraction under this paragraph is not allowed.