Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
jimchi
New Member

California Tax on Sale of a Property in Washington State

We sold a piece of unproductive land in Washington state which has no state income tax. We live in California. Will we have to pay California capital gains tax on this property?

2 Replies
rjs
Level 15
Level 15

California Tax on Sale of a Property in Washington State

Yes, all of your income, of any kind, is subject to tax by the state that you live in, no matter where the income is from. Since Washington has no state income tax, there is no problem of the same income being taxed by two different states.


(If you sold property in another state that also had income tax, the income would also be taxable by that state. One state or the other would give you a credit to eliminate the double taxation. But since Washington has no state income tax, this is not a consideration for you.)


I don't know whether California has different tax rates for long-term capital gains. Unlike the federal tax, most states do not have different rates for long-term capital gains. The states have one set of rates that applies to all income.

 

TomD8
Level 15

California Tax on Sale of a Property in Washington State

California does not have a lower rate for capital gains. All capital gains are taxed as ordinary income.

https://www.ftb.ca.gov/file/personal/income-types/capital-gains-and-losses.html

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Dynamic AdsDynamic Ads
Privacy Settings
v