Q. Do these rules around 250,000/500,000 allowed gains on homes also apply at the state (CO) level?
A. Yes. CO starts with the Federal AGI, which excludes the home sale. Capital gains are not part of the short add back list.
Q. My state is asking me if I sold an 'asset'... I did, but didn't have worthy 'gains' based on the above rules?
A. There are certain capital asset sales that are not taxed in CO, that are taxed on the federal return. CO is asking if you qualify for one of those deductions. Answer No.
