Let's say you realize a $100,000 long-term capital gain on a stock sale in a particular year. This is taxed by the federal gov't at the 15% long-term rate, right? But is it also taxed by the state (NY in my case)? I think I read this $100,000 is taxed by the state as regular income. Wouldn't that result in a huge tax liability? I kinda thought the 15% rate was the whole deal. If it's also taxed by the state as income, the effective rate is really well over 15%!? Can anyone shed some light on this? Any reference materials I should check out?
2007-07-11 14:58:16 · 6 answers · asked by slans 1 in Business & Finance ➔ Taxes ➔ United States
It varies by state. Many states start with the Federal AGI. Capital gains are included in the Federal AGI. If I read the NY form correctly, Capital gains would appear on line 4 of form IT-150.
2007-07-12 05:30:03 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes, the state will tax capital gains also if your state has a state income tax. The 15% is just for federal - the feds have no control over state taxes. The percent for state tax varies depending on the state.
2007-07-11 18:24:43 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
States that have a state income tax will tax capital gains also. The holding period for long term/short term may be different that the federal holding periods.
2007-07-11 17:13:28 · answer #3 · answered by skipper 7 · 0⤊ 0⤋
Yes, the state taxes it too. The 15% rate is only Federal. You can go to your state tax website and search capital gains. It's like the estate tax - just because the Fed doesn't tax until your estate is worth $2M, your state may tax at a much lower threshhold.
2007-07-11 15:24:53 · answer #4 · answered by ssmesq 5 · 0⤊ 0⤋
Yes, you have to pay NY state tax for capital gains - and that can add almost another 8% !
The only legal way to avoid this tax is by (temporary) moving to another state with little or no taxes on capital gain.
2007-07-15 14:33:52 · answer #5 · answered by Brian 2 · 0⤊ 0⤋
particular, it truly is filed making use of a duplicate of your Federal schedule D. On it, you checklist the two the sale receipts besides as a results of fact the fee foundation, putting the tips interior the right section, in accordance with whether it became an prolonged-term or short-term investment. maximum elementary inventory revenues are taxable, tax-unfastened units alongside with particular municipal bonds and tax-unfastened mutual funds at the instant are not.
2016-10-20 22:24:09 · answer #6 · answered by ? 4 · 0⤊ 0⤋