2007-11-06 20:33:44 · 7 answers · asked by Brian M 1 in Business & Finance ➔ Taxes ➔ United States
im in the state of california
2007-11-06 20:41:31 · update #1
it all depends on where u sold ur painting.
2007-11-06 20:37:13 · answer #1 · answered by jimmybond 6 · 0⤊ 0⤋
If you have a gain on the sale of the painting, it is reported as a capital gain (Schedule D) on your federal tax return. It will be taxed at your ordinary income tax rate or 28%, whichever is less.
Your California income tax return is based on your federal income and does not have a separate capital gains schedule. There is no special tax rate for this income, it is taxed along with all other income at the same rate, generally much lower than your federal tax rate.
2007-11-07 06:14:32 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
If you sold it at a profit, then you pay tax on the gain. Maximum federal income tax on collectibles is 28%. State tax would vary depending on state law, but if your state has an income tax, the gain would likely be taxed - tax would be whatever the state rate is, not the same as federal.
2007-11-07 09:27:50 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You will report the sale on schedule D (Form 1040). The profit from the sale is taxable.
You have to report this profit in both your federal and state returns if you meet the filing requirements.
2007-11-07 04:52:01 · answer #4 · answered by MukatA 6 · 0⤊ 0⤋
Sales tax, if any, is due from the buyer. The seller collects it if it is a taxable sale. Yours sounds like a nontaxable private sale. You would pay income tax on any profit.
2007-11-07 06:15:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You sold something and you must pay taxes. Check with the county courthouse where the transaction took place.
2007-11-07 04:50:26 · answer #6 · answered by Rahouel 4 · 0⤊ 0⤋
CA taxes capital gains as ordinary income. There is no preferential rate for long-term CG.
2007-11-07 09:10:31 · answer #7 · answered by Bostonian In MO 7 · 0⤊ 1⤋