Introduction to Capital Gain Flowcharts
The various types of sales resulting in capital gain have specific guidelines which must be met to qualify for the Iowa capital gain deduction. The following is a resource to outline these basic qualifications and should be used in conjunction with the appropriate IA 100 form. Links to the Iowa Administrative Code and Internal Revenue Code are provided for details and definitions. Due to the complexity of the Iowa capital gain deduction and the limitations encountered in responding to all possible tax scenarios, the following flow charts are presented only as a guide. The current statutes, rules, and regulations are legally controlling.
You must complete the applicable IA 100 form to make a claim to the Iowa capital gain deduction on your return. Should the Department request it, the information on the Capital Gain Deduction Checklist will be needed to verify whether you qualify for the deduction. Other information, in addition to that shown on the checklist, may also be required in some situations.