Naveen Mohan from New York Posted October 28, 2014 Report Share Posted October 28, 2014 I have a client. His annual taxable income is zero because of his family size. He has sold a property in Pakistan and according to worldwide income rule, he has to include in his 1040. It is a long term capital gain and I tried to do it on ATX Max. all capital gain transferred to line 13 of 1040 correctly. I see entry in taxable income now but tax line is blank instead of Zero. My main problem is that when I did his New York State tax return, zero percent capital gain did not work and all of his income got taxed as regular income. My question is Zero percent capital gain limited to Federal return only and states do not have to follow it? thanks for your help. Naveen Mohan Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted October 28, 2014 Report Share Posted October 28, 2014 At least for New York, you are correct. New York taxes capital gains as ordinary income. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted October 28, 2014 Report Share Posted October 28, 2014 Wisconsin has an entirely different method of calculating capital gains. I don't even want to go there. Quote Link to comment Share on other sites More sharing options...
Randall Posted October 28, 2014 Report Share Posted October 28, 2014 Kentucky doesn't have the capital gains special rates either. Quote Link to comment Share on other sites More sharing options...
cred65 Posted October 28, 2014 Report Share Posted October 28, 2014 Or OH. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted October 28, 2014 Report Share Posted October 28, 2014 Or VA. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted October 28, 2014 Report Share Posted October 28, 2014 or NE. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted October 28, 2014 Report Share Posted October 28, 2014 Nor Louisiana. Income tax calculations start with federal AGI in Louisiana. Lynn Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 28, 2014 Report Share Posted October 28, 2014 Oregon also starts with Federal AGI Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted October 28, 2014 Report Share Posted October 28, 2014 CA treats Cap Gain as ordinary income as well. Tom Hollister, CA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted October 29, 2014 Report Share Posted October 29, 2014 AR does have a special cap gains tax rule, but not based on feds. Only 70% of LT CG is taxed, all ST CG is taxed. Tax rate is ordinary, no special rate. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted November 1, 2014 Report Share Posted November 1, 2014 CT starts with federal AGI and has no separate capital gain tax rate. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.