Colo. Code Regs. 39-22-104(3)(p.5)

Current through Register Vol. 47, No. 23, December 10, 2024

Rule 39-22-104(3)(p.5) - Federal Deductions Addback

Basis and Purpose. The statutory bases for this rule are sections 39-21-112(1) and 39-22-104(3)(d), (3)(g), (3)(p), and (3) (p.5), C.R.S. The purpose of this rule is to provide guidance to certain individual income taxpayers who are required to add back a portion of the itemized or standard deductions from their federal income tax return to determine their Colorado taxable income.

(1) General Rule. Except as provided in paragraph (3) of this rule, a taxpayer whose adjusted gross income is equal to or exceeds the limit in section 39-22-104(3) (p.5)(I), C.R.S., and whose deductions exceed the limits in sections 39-22-104(3) (p.5)(I)(A) and (B), C.R.S., is required to add back the difference between their claimed itemized or standard deduction and the applicable limit on their Colorado income tax return to determine their Colorado taxable income.

(2) Filing Status. For the purposes of this rule and section 39-22-104(3) (p.5),C.R.S., a taxpayer who files married filing separately or head of household on their federal income tax return is considered a single filer.

(3) Coordination With Other Addbacks.

(a) An addition for federal deductions required pursuant to section 39-22-104(3) (p.5), C.R.S., is reduced by:

(i) Any addback required pursuant to section 39-22-104(3)(d)(I), C.R.S., for state income taxes deducted by the individual as part of the itemized deductions on their federal return, but not for an individual's share of state income tax deducted by a partnership or S corporation;

(ii) Any addback required pursuant to section 39-22-104(3)(g), C.R.S., for a charitable contribution deduction for real property for a conservation purpose; and

(iii) Any addback required pursuant to section 39-22-104(3)(p), C.R.S., for itemized deductions.

39-22-104(3)(p.5)

47 CR 07, April 10, 2024, effective 4/30/2024