2006 Nebraska Revised Statutes - § 77-2715.09 — Capital stock; sale or exchange; capital gains treatment.

Section 77-2715.09
Capital stock; sale or exchange; capital gains treatment.

(1)(a) Every resident individual may elect under this section to subtract from federal adjusted gross income or, for trusts qualifying under subdivision (2)(c) of this section, from taxable income the capital gain from the sale or exchange of capital stock of a corporation acquired by the individual (i) on account of employment by such corporation or (ii) while employed by such corporation.

(b) The election may be made for all taxable years beginning or deemed to begin on or after January 1, 1989, except that such election may be made with respect to one-half of such gain included in federal adjusted gross income for taxable years beginning or deemed to begin on or after January 1, 1988.

(2)(a) Each individual shall be entitled to one election under subsection (1) of this section during his or her lifetime for the capital stock of one corporation.

(b) The election shall apply to subsequent sales and exchanges in any taxable year if the sale or exchange is of capital stock in the same corporation and such capital stock was acquired as provided in subsection (1) of this section.

(c) After the individual makes an election, such election shall apply to the sale or exchange of capital stock of the corporation transferred by inter vivos gift from the individual to his or her spouse or issue or a trust for the benefit of the individual's spouse or issue if such capital stock was acquired as provided in subsection (1) of this section. This subdivision shall apply, in the case of the spouse, only if the spouse was married to such individual on the date of sale or exchange or the date of death of the individual.

(d) If the individual dies without making an election, the surviving spouse or, if there is no surviving spouse, the oldest surviving issue may make the election for capital stock that would have qualified under subdivision (c) of this subsection.

(3) An election under subsection (1) of this section shall be made by including a written statement with the taxpayer's Nebraska income tax return or an amended return for the taxable year for which the election is made. The written statement shall identify the corporation that issued the stock and the grounds for the election under this section and shall state that the taxpayer elects to have this section apply.

Source:

Laws 1987, LB 775, § 12

Laws 1991, LB 773, § 12

~Reissue Revised Statutes of Nebraska