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If my home sale gain is exempted from federal tax, is my state tax (CO) treated the same?

Forum|Forum|6 years ago
June 1, 2019
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I qualify for the federal exemption on gains from a home sale. Does the exemption apply in states as well. I sold in Colorado.

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Best answer by Fern

You can exclude the gain on the sale of a primary residence for Colorado. The starting point for your Colorado return is your federal taxable income. Adjusting that income for the gain on the sale of a primary residence is not included in the definitions of additions to federal income. Additionally, if a portion of your gain is included in your federal income, you may be able to subtract it from your Colorado income. The amount you can exclude is up to $100,000.

See https://www.colorado.gov/pacific/sites/default/files/Income15.pdf and See Page 11 of the instructions for Co tax returns (https://www.colorado.gov/pacific/sites/default/files/104Book.pdf) for more information.

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FernAnswer

You can exclude the gain on the sale of a primary residence for Colorado. The starting point for your Colorado return is your federal taxable income. Adjusting that income for the gain on the sale of a primary residence is not included in the definitions of additions to federal income. Additionally, if a portion of your gain is included in your federal income, you may be able to subtract it from your Colorado income. The amount you can exclude is up to $100,000.

See https://www.colorado.gov/pacific/sites/default/files/Income15.pdf and See Page 11 of the instructions for Co tax returns (https://www.colorado.gov/pacific/sites/default/files/104Book.pdf) for more information.