HOUSE BILL 120
56th legislature - STATE OF NEW MEXICO - first session, 2023
Christine Chandler and Peter Wirth and Derrick J. Lente
RELATING TO TAXATION; LIMITING THE CAPITAL GAINS DEDUCTION FROM NET INCOME.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-34 NMSA 1978 (being Laws 1999, Chapter 205, Section 1, as amended) is amended to read:
"7-2-34. DEDUCTION--NET CAPITAL GAIN INCOME.--
A. Except as provided in Subsection C of this section, a taxpayer may claim a deduction from net income in an amount equal to [the greater of: (1)] the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed, but not to exceed [one thousand dollars ($1,000) or
(2) forty percent of the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed] two thousand five hundred dollars ($2,500).
B. Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the deduction provided by this section that would have been allowed on the joint return.
C. A taxpayer may not claim the deduction provided in Subsection A of this section if the taxpayer has claimed the credit provided in Section 7-2D-8.1 NMSA 1978.
D. As used in this section, "net capital gain" means "net capital gain" as defined in Section 1222 (11) of the Internal Revenue Code."
SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2024.
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