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Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 10146
Experience:  Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
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I know what my federal capital gains taxes are. But I am

Customer Question

I know what my federal capital gains taxes are. But I am selling a property in NYC, a rental property , not my primary residence. My basis is zero dollars. I will see a gain of 800,000 dollars. What will my capital gain tax be in NYC?
That is after my expenses. What percent will I pay in capital gain tax?
Submitted: 5 months ago.
Category: Capital Gains and Losses
Expert:  Lane replied 5 months ago.

New York state taxes this as all other income and, for a couple married filing jointly would be at 6.85%

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NYC does the same and the rate would be 3.88%

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Let me know if you have questions

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Lane

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I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986.

Customer: replied 5 months ago.
you are saying NY does not have a capital gains tax ? That does not agree with anything I've been told .
Expert:  Lane replied 5 months ago.

New york, as almost every other state, does not differentiate between capital gain income and ordinary income, as the federal tax code does

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Here's a good overview of this:

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http://taxfoundation.org/blog/how-high-are-capital-gains-tax-rates-your-state

Expert:  Lane replied 5 months ago.

The state with the highest top marginal capital gains tax rate is California (33 percent), followed by New York (31.5 percent), Oregon (31 percent) and Minnesota (30.9 percent).

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What this is doing is adding the top ordinary income tax bracket for the state to the special long-term rate applied at the federal level for property held over 1 year.

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Expert:  Lane replied 5 months ago.

For NY, this is the 20% top federal rate + the 2.8 % medicare surtax + the 8.5% top bracket for income in NY

Expert:  Lane replied 5 months ago.

And because capital gain is a component OF taxable income, (and for state, again, no differentiation in rates applied between capital gain and ordinary income) your other household income for the year of sale will determine where you fall in that range.

Customer: replied 5 months ago.
Thanks. I found your answer robe confusing and not helpful . You do not need to write or call any longer
Sincerely
Stephen
Expert:  Lane replied 5 months ago.

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

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Otherwise I’m working for no crediting at all here.

Thank you!

Lane

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I have a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice on three continents, since 1986

Expert:  Lane replied 5 months ago.

Use the rates I gave you at the beginning of the answer and you'll be fine.

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And just to recap ... NO New York does NOT have a special rate for capital gains, as the federal tax law does.

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At the state level, it's all just income.

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Hope this helps to clarify

Expert:  Lane replied 5 months ago.

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