Bill > HB508

This bill modifies Missouri's income tax law by adding a new provision that allows taxpayers to fully deduct (subtract) 100% of all capital gains from their Missouri adjusted gross income for tax years beginning on or after January 1, 2025. Capital gains are profits earned from selling investments like stocks, bonds, or real estate. The bill amends Section 143.121 of the Missouri Revised Statutes by adding a new subsection (14) to the list of income subtractions, which means taxpayers will not have to pay state income tax on any capital gains they report on their federal tax returns. This change could potentially provide significant tax relief for investors and individuals who sell assets at a profit, as they would no longer be required to pay Missouri state income tax on those gains. The bill appears to be aimed at making Missouri's tax environment more attractive by reducing the tax burden on investment income.

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https://house.mo.gov/Bill.aspx?bill=HB508&year=2025&code=R