Virginia taxes capital gains as income with the rate reaching 5.75%. Washington State taxes capital gains at a rate of 7%. However, real estate, retirement savings, livestock and timber are exempt from this tax.
How do I avoid capital gains tax on real estate in Virginia?
Home Sale. If you owned and lived in your home for two of the last five years before the sale, then up to $250,000 of profit may be exempt from federal income taxes. If you are married and file a joint return, then it doubles to $500,000.
How to avoid capital gains tax when selling investment property?
A few options to legally avoid paying capital gains tax on investment property include buying your property with a retirement account, converting the property from an investment property to a primary residence, utilizing tax harvesting, and using Section 1031 of the IRS code for deferring taxes.
How do you calculate capital gains on sale of investment property?
Is selling an investment property considered capital gains?
Capital gains tax basics
Gains on the sale of personal or investment property held for more than one year are taxed at favorable capital gains rates of 0%, 15%, or 20%, plus a 3.8% investment tax for people with higher incomes.
How much is capital gains tax in NC when selling a house?
Instead, it taxes all capital gains as ordinary income, using the same rates and brackets as the regular state income tax: North Carolina is one of the states with a flat income tax rate, so no matter the amount of taxable ordinary income, the state tax rate will always be 4.99%.