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MO HB2945

MO HB2945
Amends tax law to provide for additional subtractions for capital gains that are recharacterized as ordinary income by IRS


summary

Introduced
01/13/2026
In Committee
02/17/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Amends tax law to provide for additional subtractions for capital gains that are recharacterized as ordinary income by IRS

AI Summary

This bill amends Missouri tax law to allow for additional subtractions from income for capital gains that are recharacterized as ordinary income by the IRS, specifically for tax years beginning on or after January 1, 2026, and also for estates and trusts. This means that certain income that is treated as ordinary income for federal tax purposes, but would have been considered a capital gain without specific IRS code provisions (26 U.S.C. Sections 1245 and 1250), can now be subtracted from Missouri taxable income, effectively reducing the state income tax liability on those gains.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (1)

Last Action

Placed on the Informal Perfection Calendar (H) (on 02/24/2026)

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