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  1. 2024 N.M. Stat. (here)
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2024 New Mexico Statutes
Chapter 7 - Taxation
Article 2 - Income Tax General Provisions
Section 7-2-34 - Deduction; net capital gain income. (Effective January 1, 2025.)

Universal Citation:
NM Stat § 7-2-34 (2024)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
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A. 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 two thousand five hundred dollars ($2,500); or

(2) forty percent of up to one million dollars ($1,000,000) of the taxpayer's net capital gain income from the sale of a business that is allocated or apportioned to New Mexico pursuant to Section 7-2-11 NMSA 1978 for the taxable year for which the deduction is being claimed.

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

History: Laws 1999, ch. 205, § 1; 2003, ch. 2, § 7; 2019, ch. 270, § 14; 2024, ch. 67, § 8.

ANNOTATIONS

The 2024 amendment, effective January 1, 2025, limited the capital gains deduction to twenty-five hundred dollars; in Subsection A, in the introductory clause, deleted "Except as provided in Subsection C of this section", in Paragraph A(1), after "not to exceed", changed "one thousand dollars ($1,000)" to "two thousand five hundred dollars ($2,500)", and in Paragraph A(2), after "forty percent", added "of up to one million dollars ($1,000,000)", and after "capital gain income", added "from the sale of a business that is allocated or apportioned to New Mexico pursuant to Section 7-2-11 NMSA 1978"; and deleted former Subsection C and redesignated former Subsection D as Subsection C.

Applicability. — Laws 2024, ch. 67, § 42 provided that the provisions of Laws 2024, ch. 67, §§ 5, 8, 10 and 32 through 37 apply to taxable years beginning on or after January 1, 2025.

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