TT's Idaho state tax software removing 100 percent of qualified capital gain, instead of 60 percent

[RaineB]

Idaho allows up to a 60 percent deduction on qualified capital gains.

I have a qualified Idaho capital gain. Both last year and this year, Turbotax gives me a 100 percent deduction of the capital gain when I figure my state taxes. So it deducts the entire capital gain, and of course the tax owing is way too low. Last year, I didn't bother using Turbotax for my state taxes, figuring the mistake would be corrected eventually. 

Now the same thing is happening this year. I don't think there's any circumstance where you get to deduct your entire capital gain on an Idaho tax return -- it should be a maximum of 60 percent. Is this an ongoing quirk of Turbotax or am I missing something? I took a screenshot of the Turbotax's rendering of my Idaho taxes. It shows the right figure for my capital gain, but the entire amount is an "Idaho Subtraction."

This is from the Idaho State Tax Commission:

What is the qualified capital gains deduction in Idaho?
The deduction is 60% of the capital gain net income included in federal taxable income from the sale of Idaho property.

I can easily do my own state tax return, but I can't figure out why I keep running into this problem with Turbotax. Any ideas? Has anyone else run into this? 

[RaineB]

I got an email response from TT saying it were reaching out because "it sounds like you might be feeling a bit unsure about your taxes. Maybe you're not completely confident about how your refund is calculated, or maybe you just need a little help with something. We get it – taxes can be confusing! And we're here to help make filing your taxes as easy as possible." 

How nice, but uh, no, that wasn't the problem. TT continued: "Please feel free to give us a call at 800-323-0884." So I did. I was then told that I'd have to pay more to speak with someone who could respond to my specific question, which of course I didn't bother to do. The agent took notes and I said I hoped someone would call me to straighten out the problem for next year because this "error" or "situation," or whatever you want to call it, is preventing me from using TT for my state taxes. So it's costing TT money. Three weeks later, I haven't heard anything. 

This would not be a common problem because it would only pertain to Idaho taxpayers with a capital gain, who happen to use TT, and Idaho has a small population. And even if others have found this problem, and tried to bring it to TT's attention, they've likely had no more success than I have.

[BillM223]

This is not exactly what the instructions say. 

They say,

You might be able to deduct 60% of the capital gain net income reported on federal Schedule D from the sale of any of the qualified Idaho property described below. 

(a) Real property held for at least 12 months, or 

(b) Tangible personal property used in a revenue-producing enterprise and held for at least 12 months. A revenue-producing enterprise means: • Producing, assembling, fabricating, manufacturing, or processing any agricultural, mineral, or manufactured product. • Storing, warehousing, distributing, or selling at wholesale any products of agriculture, mining, or manufacturing. • Feeding livestock at a feedlot. • Operating laboratories or other facilities for scientific, agricultural, or animal husbandry, or industrial research, development, or testing.

(c) Cattle and horses held for at least 24 months and other livestock used for breeding held for at least 12 months. 

(d) Timber held for at least 24 months. 

(e) Certain sales of partnership interests. See Idaho Code 63-3022H(3)(f) for more information.

So, certain property can have the gain reduced by 60%. It doesn't address other property (like out of state property).

Are you a resident of Idaho?