I own property in New York and I'm wondering how much does the state charge in the form of capital gains taxes? If I'm excluded from federal income taxes on the sale of property, does that exclusion also apply in New York State?
The BIDaWIZ Team's Answer:
New York State does not have a separate capital gains tax as income from the sale of property is generally taxed at ordinary income tax rates. However, federal tax exemptions and exclusions on the sale of property may also apply to New York state taxes. For instance, the capital gains exclusions via Section 121 of the Internal Revenue Code of $250,000 for single filers and $500,000 for joint filers, is also applicable in New York State. This doesn't however mean that if you are in the 15% federal ordinary income tax bracket and not subject to federal long-term capital gains tax, you won't be taxed on that same income in New York state.