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Code of Colorado Regulations eDocket
Details of Tracking Number
2023-00703
CCR details
| Tracking Number |
2023-00703 |
| Type of Filing |
Permanent Rule |
| Department |
200 Department of Revenue |
| Agency |
201 Taxation Division |
| CCR Number |
1 CCR 201-2 |
| CCR Title |
INCOME TAX |
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Proposed rule
| Notice Filed with SOS |
10/19/2023 |
| Rule |
ProposedRuleAttach2023-00703.doc |
| Additional Information |
AddInfoAttach2023-00703.docx |
| Statutory Authority |
The statutory bases for this rule are sections 39-21-112(1), 39-22-104(3)(d), 39-22-202, 39-22-203, 39-22-304(2)(d), 39-22-321, 39-22-322, and 39-22-323, C.R.S. |
| Description of Subjects/Issues |
The purpose of this rule is to provide guidance regarding the addition to federal taxable income required for individuals, estates, and trusts for state income taxes deducted by the individual, estate, or trust or by a partnership or S corporation in which the individual, estate, or trust is a partner or shareholder. The rule also clarifies that the addback is required for any premiums paid under the Paid Family and Medical Leave Act that an individual deducts as state income taxes in computing their federal taxable income.
Additionally, the rule explains the limitation relating to the total itemized deductions claimed by the individual, estate, or trust and the application of that limitation to the addition required for state income taxes deducted by the individual in determining their federal taxable income. However, the rule advises that the limitation does not apply to the addition required for an individual’s, estate’s, or trust’s share of state income taxes deducted by a partnership or S corporation because that deduction is not included in the individual’s, estate’s, or trust’s itemized deductions. |
| Purpose/Objective of Rule |
The purpose of this rule is to provide guidance regarding the addition to federal
taxable income required for individuals, estates, and trusts for state income taxes
deducted by the individual, estate, or trust or by a partnership or S corporation in
which the individual, estate, or trust is a partner or shareholder. The rule also
clarifies that the addback is required for any premiums paid under the Paid Family
and Medical Leave Act that an individual deducts as state income taxes in
computing their federal taxable income. Additionally, the rule explains the limitation
relating to the total itemized deductions claimed by the individual, estate, or trust
and the application of that limitation to the addition required for state income taxes
deducted by the individual in determining their federal taxable income. However,
the rule advises that the limitation does not apply to the addition required for an
individual’s, estate’s, or trust’s share of state income taxes deducted by a
partnership or S corporation because that deduction is not included in the
individual’s, estate’s, or trust’s itemized deductions. |
| Basis And Purpose |
BasisAndPurposeAttachment2023-00703.docx
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| Submitted in response to issues raised by COLS/OLLS? |
No
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| Is this rule adopted in response to recent legislation? |
Yes
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| Recent legislation bill number |
HB 21-1131, HB 21-1327 and SB 22-124
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| Hearing Date |
11/30/2023 |
| Hearing Time |
10:00 AM |
| Hearing Location |
Virtual Hearing See Comments |
| Contact Name |
Josh Pens |
| Contact Title |
Director |
| Contact Telephone |
3038665627 |
| Contact email |
dor_taxrules@state.co.us |
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Adopted rule
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