Bill > SB1575

This bill modifies how capital gains are taxed for estates and trusts in Missouri, specifically for tax years beginning on or after January 1, 2026. It introduces a new section to state law that allows for the subtraction of 100% of income reported as a capital gain for federal income tax purposes from an estate or trust's Missouri taxable income, provided this subtraction does not affect the federal distributable net income, which is the income of the estate or trust that is distributed or required to be distributed to beneficiaries. The bill also makes other adjustments to an estate or trust's federal taxable income to arrive at its Missouri taxable income, including subtractions for certain personal exemption deductions and additions or subtractions for modifications described in other sections of Missouri tax law, again with the caveat that these do not determine the federal distributable net income.