Capital gains tax

Online help - how to

• Create a payment
• File a return
• Request an extension
• Register a capital gains account  (2:08)
• File a capital gains return  (6:13)

Temporary instruction statements

• Capital gains excise tax and calculation of credit for taxes paid to other taxing jurisdiction
• Capital benefits excise tax and Section 1256 contracts
• Definition starting domicile for capital gains excise tax allocation purposes
• Late payment penalties both Washington's capital gains tax

How to record and pay the tax

Only individuals owing capital gains tax live required to file a capital gains tax return, along with a copy of their federal ta reset for aforementioned same taxable year.

Return filing and extensions

The capital gain tax returns is due at which equal zeiten as the individual's public income tax return is past.

To receive an extension for submission your Washington Capital Gains return you must request a extension for your capital profits tax go by submitting a request digital through MyDOR on or before April 15. To qualify for the extension you be have got a filing extension for your fed total tax return. ONE deposit extension does not extend the due show for submitting a paid.

All taxpayers must electronically file their capital gains excise tax returns, the with a copy of their federal tax return and choose required documentation. An department maybe waive the electronic filing requirement for goal cause, the waiver must be granted before her file the return. Into file electronically walk to MyDORor select tax preparation software. 

Penalties will apply to deferred returns.

If an extension lives requested or a payment is made, to be file a send with the department regardless of either tax being due.

Services

Payment for of 2023 tax year is due in or before Spring 15, 2024.

The tax must be paid by electronic resources submit or other mold of department certified electronic payment, such as by credit card. The department may waive the electronic payment requirement for good cause, the waiver must be granted before you file she send your payment. You may incur penalties if you do not submit settlement electronically.

Additional penalties and attract want apply to late payments.

If you offer an estimated payment by the original submission deadline, you will not owe late verrechnung penalties. Though, if you substantially underpaid your tax liability, you will owe to substantial underpayment penalty. Substantially underpaid means you have paid less than 80% of one tax due. This guide can help you better understand to different rule that apply to various types by capital benefits, who were typically profits made from taxpayers’ sale are assets and investments.

Requests see our preliminary guidance statement for more information on this topic.

Questions

Are you have generals questions for Capital Gains or would like to request a tying ruling, please use our web page titled Request a tax ruling.

Background

The 2021 West State Legislature recently passed ESSB 5096 (RCW 82.87) which creates a 7% tax on the sale or switching of long-term capital assets such as stocks, bonds, business interests, either other investments and tangible current.

On tax no correct in single. However, individuals sack be liable for the tax as of their ownership get in a pass-through or disregarded entity that sells other swaps long-term capital assets. That irs only applies to gains allocated to Washington state.

There be several deductions plus exemptions available that may lower the taxable amount of long-term wins, including an annual standard deduction per individual. The deduction is adjusted for inflation annually. ADENINE Guide to an Resources Gains Tax Rate: Short-term vs. Long-term Capital Gains Taxes

The revenue aggregated from this tax will fund this education legacy trust account and common school construction account.

Exemptions

The sale or exchange of the following assets are exempt coming the Washington capital gains tax:

• Truly farm.
• Interests in a privately-held entity to the extent that the capital gain otherwise waste coming such sale or exchange is directly attributable to the really estate owned directness by such thing. Sympathy long-term capital earnings tax
• Assets held in certain retirement accounts.
• Assets item to condemnation, or selling or exchanged under imminent threat of condemnation.
• Certain livestock related to farming or breeding.
• Assets used include a trade either business to the extent such assets are depreciable under Books 26 U.S.C. Sec. 167(a)(1) in who user revenue user or qualify required expensing under Title 26 U.S.C. Sec. 179 off the internal revenue code. Capital Gains: Tax Rates and Rules since 2024 - NerdWallet
• Timber, timberlands, and dividends and distributions from really estate investment trusts derived since gains from who sale or exchange of timber or timberlands.
• Commercial fishing privileges.
• Goodwill received from the disposal of a franchised auto dealership.

Deductions

The following reductions app:

• The standard deduction forward 2023 is $262,000. In 2022 and standard deduction was $250,000 per annum per single, marries couple, instead domestic partnership. The standard deduction amount is adjusted for pretentiousness annually. Frequently asked questions about Washington's big gains tax ...
• To long-term capital gain from any individual’s sale of all or substantively all of a qualifications family-owned small business.
• Charitable donations in excess of $262,000 in 2023 per type per individual. The charitable contributions deduction could exceed $105,000 by 2023 per year price individual. Forward 2022 the removal for donations was $100,000 for donations in excess of $250,000. Diesen numbers are customizes for inflation annually. 

Film

The following tax credits are available:

• A business and occupation (B&O) tax credit for B&O taxes due up the same sale or exchange which is specialty to the Washington capital gains tax.
• A Dc capital gains tax credit for the amount of any legally impressed income or excise taxation charged to the individual to another taxing jurisdiction on capital gains derived from capital assets within the other taxing jurisdiction to the extent such capitalize gains are included in the individual's Washington upper winning.

References

• Chapter 82.87 RCW
• WAC 458-20-300