2006 New Mexico Statutes - Section 7-2-34 — Deduction; net capital gain income.

7-2-34. Deduction; net capital gain income.

A.     Except as provided in Subsection C of this section, a taxpayer may claim a deduction from net income in an amount equal to the greater of:   

(1)     the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed, but not to exceed one thousand dollars ($1,000); or   

(2)     the following percentage of the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed:   

(a)     for a taxable year beginning in 2003, ten percent;   

(b)     for a taxable year beginning in 2004, twenty percent;   

(c)     for a taxable year beginning in 2005, thirty percent;   

(d)     for a taxable year beginning in 2006, forty percent; and   

(e)     for taxable years beginning on or after January 1, 2007, fifty percent.   

B.     A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the deduction provided by this section that would have been allowed on the joint return.   

C.     A taxpayer may not claim the deduction provided in Subsection A of this section if the taxpayer has claimed the credit provided in Section 7-2D-8.1 NMSA 1978.   

D.     As used in this section, "net capital gain" means "net capital gain" as defined in Section 1222 (11) of the Internal Revenue Code.