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Investors & landlords
Q. What I basically meant is that the federal and state tax is already in the capital gain?
A. No. State and federal income tax are always separate; regardless of what type of income is being taxed. There is no exception for capital gains.
It's somewhat of a misnomer to refer to a capital gains tax. There is no "capital gains tax", per se. There is only an income tax. Capital gains are added to your other income and your income tax is calculated. It just that the tax calculation is complicated because capital gains (long term) is taxed at a different rate.
If you are subject to a local (city) income tax (see https://ttlc.intuit.com/community/after-you-file/discussion/local-income-taxes/00/689628), capital gains are usually not taxed.
‎December 16, 2019
3:40 AM