Individual Income Tax | Letter Rulings
Private Letter Rulings and General Information Letters
Businesses and individuals can request a general information letter or private letter ruling on any tax administered by the department. General information letters are general discussions of tax issues that are not specifically addressed in other department publication, such as FYIs, rules and regulations, or form instructions. General Information Letters are general statements of department understanding and cannot be relied upon as binding guidance. Private letter rulings are specific determinations of the tax consequences of a proposed or completed transaction. Unlike general information letters, private letter rulings are binding on the department and, therefore, provide taxpayers with greater certainty for their business and personal taxes. However, private letter rulings can only be relied upon by the party to whom the ruling is issued. Private letter rulings cannot be relied upon by any taxpayer other than the taxpayer to whom the ruling is made. For more information about general information letters and private letter rulings including fee amounts and how to submit a request, please see department regulation 24-35-103.5.
PLR-19-001 Transferable Tax Credit Program
This letter addresses the transferable income tax credits in section 24-46-104.3, and specifically how the transfer of eligible Enterprise Zone credits are treated by the Department.
Contributions made to a club that provides training and competition programs for young ski racers, in order to fund a project to expand the club's training environment, do not qualify for the child care contribution credit.
PLR-16-006 Credit for Taxes Paid to Another State
Taxpayers are entitled to a credit for taxes paid to Ohio on income that Colorado sources to Ohio. Taxpayers determine the amount of income sourced to Ohio by using an average of the limited liability company’s apportionment ratios for the three tax years immediately preceding the tax year in which the husband’s interest in the limited liability company was sold.
Contributions made to a fund that awards grants to eligible nonprofit child care programs in Colorado to make capital improvements are eligible for the child care contribution credit despite the contribution not being made directly to the child care facility or program.
If the dividend paid by the mutual fund is interest income from a United States obligation, the interest income can be subtracted from federal taxable income to the extent the income is included in federal taxable income. Colorado imposes tax on interest income from obligations of other states or their political subdivisions, but not on interest income derived from obligations of the State of Colorado and its political subdivisions.
GIL-14-011 S Corporation Colorado Source of Income
Subchapter S corporations are not subject to Colorado income tax. A Subchapter S corporation is not required to register an income tax account or withholding account with the Department. A Subchapter S shareholder may have an obligation to file an income tax return and pay Colorado income taxes if the person is a resident, or, if not a resident, the nonresident has any income from the sources described in §39-22-109. C.R.S.
GIL-14-019 Income Earned by Nonresident
Income derived from a tax lien certificate is sourced to Colorado because it is income from an ownership of an interest in real property in Colorado, and if the taxpayer purchases the lien for investment purposes, it is income derived from carrying on of a trade or business in Colorado and it is income derived from an intangible that is used in a trade or business in Colorado.
GIL-13-026 Innovative Motor Vehicle Tax Credit
A taxpayer can claim an innovative motor vehicle credit for each motor vehicle it purchases or leases so long as the vehicle is registered, titled, and used in Colorado.
Taxpayer, a limited liability company, and its members cannot subtract from Colorado taxable income net capital gain resulting from the sale of the Taxpayer’s goodwill because the sale did not qualify as a sale of a ownership interest.
Nonresident corporate directors who attended two-day board of directors' meeting in Colorado incurred state income tax liability based on number of days performing duties in Colorado.