Comments on: Capital Gains Tax Rates – State by State

By: bob Nicholson

bob Nicholson — Thu, 18 Aug 2011 16:32:10 +0000

If I live in Wisconsin and sell a property in another state what capital gain rate do I use??

By: reibrain

reibrain — Fri, 04 Mar 2011 00:43:32 +0000

Hey Joseph, thanks for the comments. We just updated it for the short-term capital gains tax rate so its updated now. Thanks!

By: joseph

joseph — Thu, 03 Feb 2011 05:10:08 +0000

As Dani and Mike pointed out, the short term capital gains tax rate for Massachusetts is 12%. (today as well as in 1997)
Can this table be fixed?

By: angie de blasio

angie de blasio — Wed, 02 Feb 2011 20:53:33 +0000

We live in California and have a second home in Seattle Washington which we plan to sell. I know we will have to pay federal capital gains tax, but will we be required to pay California capital gains tax also?

By: Dennis Fassnacht

Dennis Fassnacht — Tue, 25 Jan 2011 18:45:03 +0000

Hello my parents are in their 70s and are considering selling their home and property.They bought the place in 1957 for 1 dollar,it has been updated many times. They spent alot of money on it ,its a duplex home,theres also a mobile home which i live in, on approximately 3 acres of land in Stevens ,Pennsylvania.This letter is concerning capital gains tax, say they sell it for $150,000 how much would they owe on this tax? thank you, Dennis Fassnacht

By: rob digma

rob digma — Sun, 16 Jan 2011 16:25:46 +0000

hello,

I am not retired yet and if my only income is capital gains ( short and long term), do i pay any social security and medicare taxes. And further, this is confusing, since if i don’t pay social security taxes , would i get to collect social security at retirement ( assume i payed these taxes for 1/2 of my working life but due to circumstances i am able to just generate capital gains now until retirement).

thanks

By: reibrain

reibrain — Mon, 10 Jan 2011 19:31:55 +0000

Hey John, this isn’t tax advise… I’m not a CPA… but in most states any gain where the asset was held less than 12 months is considered a short term capital gain. In most states short term capital gains are just taxed as ordinary income. So, that $5,000 gain will just be included in your ordinary income on your tax return and you’ll pay tax on it just like you would your regular income from a job.

To answer your last question… ya, long-term capital gain rates can change based on your taxable income bracket for that year. Currently… (as I type this) there is still a bracket where you don’t pay any capital gains tax on a long-term gain if you fall into some of the lowest tax brackets… but most people make too much $ to qualify for these tax brackets.

By: reibrain

reibrain — Mon, 10 Jan 2011 19:22:27 +0000

Hey Mark, for “short-term”… I’m assuming you’re meaning under 12 months… right? Again, I’m not a CPA and this is *NOT* tax advise… but, in my state of Oregon… for money market accounts you just pay normal income tax on that income… for both federal and state. So, your state is probably the same. All short-term capital gains tax is considered “normal income” by most states.

By: reibrain

reibrain — Mon, 10 Jan 2011 19:18:39 +0000

Hey Taralea,

I wish I could tell ya. I’m just a real estate investor… not a tax advisor. You may want to check with a CPA in the state of Arizona to get their take on it. The way I see it… you pay taxes based on where you live… unless there’s a special tax on foreign investors or something. Anyhow, check w/ a good CPA there in Arizona. Good luck!

By: Taralea

Taralea — Sun, 09 Jan 2011 18:18:39 +0000

Hi, Could you please let me know what capital gains I would pay when I sell, I am a foreign investor buying real estate in Arizona? Is there ways to defer it (ie forming a corporation)? Also, what would I pay yearly in tax or gains if I choose to rent it out?
Any info is greatly appreciated!