Deductions for certain business expenses

Certain business expenses, discussed below, that are deductible in the calculation of federal taxable income must be added back in the calculation of Colorado income tax. These additions are required regardless of whether the individual claimed the deduction as the sole proprietor of the business on Schedule C of their federal return or if the deduction was taken in the calculation of their income from a partnership or S corporation in which they were a partner or shareholder. A partner or shareholder must add back on their Colorado return their distributive or pro rata share of the deduction claimed by a partnership or S corporation.