Owners of businesses in Louisiana considering a sale or divestiture of their ownership interests or substantially all of the assets of a business entity domiciled in this state should be advised that during the 2024 Third Extraordinary Session the legislature repealed the net capital gains deduction in its entirety.
Louisiana Revised Statutes 47:293(9)(a)(xvii) and (10) provides an individual income tax deduction for net capital gains resulting from the sale or exchange of an equity interest in or substantially all of the assets of a non-publicly traded corporation, partnership, limited liability company, or other business organization commercially domiciled in Louisiana.
For taxable periods beginning on and after January 1, 2025, in addition to other significant changes, Act 11 repeals Louisiana Revised Statutes 47:293(9)(a)(xvii) and (10) in their entirety, eliminating the net capital gains deduction from income tax for Louisiana residents and non-residents alike. This deduction from Louisiana income tax will not be available for capital gains realized on sales or exchanges of such equity interests or assets on or after January 1, 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
