2007-07-22 15:14:58 · 2 answers · asked by Jason T 2 in Business & Finance ➔ Taxes ➔ United States
It will be taxed as ordinary income (like all the other income). California has no reduced capital gain rate.
2007-07-22 17:19:57 · answer #1 · answered by naekuo 7 · 1⤊ 0⤋
California taxes are closely related to the federal tax laws. You report the federal taxable income on your CA tax return and then make adjustments (+ or -) for various differences (for example CA doesn't tax social security income; CA doesn't tax interest income on treasury bills, notes, and bonds, etc.)
The bad news is that , while on the federal tax return you calculate the tax on long term capital gains separately (at a lower rate), the CA tax return makes no allowance for a separate rate calculation...the long term gains are treated as ordinary income.
http://www.ftb.ca.gov/ is the website for the CA Franchise Tax Board...you can download forms and instructions from this site.
2007-07-23 00:12:10 · answer #2 · answered by skipper 7 · 0⤊ 0⤋