Section 17 Reduced Gain on Certain Property Acquired Before January 1, 1973

• Library: Tax Law 2009

As noted in §6.3 above, the Missouri income tax laws in effect before January 1, 1973, did not incorporate the federal income tax law. In particular, the prior Missouri tax law did not recognize certain adjustments to the basis of property under federal law. Consequently, under the prior Missouri law, property could have a different basis for federal and Missouri income tax purposes.

Section 143.121.3(b), RSMo Supp. 2007, addresses this difference in basis. This provision applies to taxpayers whose...