Capital Gain Transactions Credit (code 04)
You may claim a credit for the short-term and long-term capital gain on a transaction if:
- the transaction occurs on or after Jan. 1, 2008;
- at least 70 percent of the gross proceeds of the transaction are used to buy stock in a qualified Utah small business corporation within 12 months from when the capital gain transaction occurred; and
- you did not have an ownership interest in the qualified Utah small business corporation at the time of investment.
|Calculation of Capital Gain Transactions Credit|
|1. Eligible capital gain||$|
|2. Multiply line 1 by 5% (.05). This is your credit.||$|
|Enter this amount on TC-40A, Part 3, using code 04.|
There is no form for this credit. Keep all related documents with your records.
Note: You may not carry forward or back any credit that is more than your tax liability.