How much capital gains tax do i pay on a painting ,that sold for $700.000?

Question

The painting was sold in navada ,I live in calif. I sold it an aution for $700.000 how much do i have to pay in taxes for capital gains.?And do i owe state or fed. ect. tax? When are the taxes due ?

Answer 1

Depends on your basis, what you bought it for. Or if you inherited it, what it was worth when the person died who left it to you. Or if you got it as a gift, what the person paid for it who gave it to you.

You subtract your basis and any selling costs from the $700K, and pay federal capital gains tax on the difference at 28%, the rate for collectibles. The amount is really due as estimated payment at the end of the quarter when you sold it. You'll report it on your tax return for the year when you sold it.

You will also owe CA tax on the sale.

Answer 2

28% (higher rate for collectibles) of the difference between the sales price after expenses and your tax basis.

Answer 3

That depends upon what you paid for it. Without knowing that, it's impossible to say.