I’m happy to report to you that after a long drawn-out battle in the state legislature, the Idaho state capital gains exclusion has been temporarily expanded from 60% to 80% for 2001.
To qualify for the capital gains exclusion on real property, the asset must have been held for a minimum of 18 months. The tax rate reduction applies retroactively to January 1, 2001.
This element of tax reduction for Idaho property owners was part of an overall legislative package that was endorsed by business and industry in the state and was aggressively supported by the Idaho Association of Realtors. The IAR will continue to work on behalf of Idaho real property owners to make the exclusion permanent. Additional relief in 2002 will be sought, as reported recently in IAR View magazine (July 2001).
By way of observation, I am encouraged by this sign of support by our legislators toward Idaho property owners. In my view, legislation such as this, as well as recent federal tax relief for sellers of primary residences, signals a positive trend for owners of rental property in the coming years.
Until next time,
Glenn Sather
