## Capital Gains and Depreciation on Rental Property Sale - Virginia (Non-Resident)

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Topic Author
abracadabra11
Posts: 195
Joined: Sat May 01, 2010 2:09 pm

### Capital Gains and Depreciation on Rental Property Sale - Virginia (Non-Resident)

Looking for some guidance on calculating depreciation and capital gains on a rental property that was sold in Virginia. I think I have a decent grasp on the federal taxes due, but am not confident about what would be due to the state of Virginia. I plan on using tax software to calculate the tax due, but would like to understand what to expect.

Assume the following:
1. Non-resident of Virginia
2. Virginia Income from Rental Property will effectively be 0 (or negative)
3. No other sources of Virginia Income
4. Capital Gain on Rental Property \$40k
5. Carry Over losses from Rental Property \$18k
6. Prior Years' Depreciation on Rental Property \$20k
7. Current Year Capital Losses \$25k (TLH stocks)

A few questions:
1. Can I deduct capital losses (#7) against the rental property capital gain (#4) for Virginia taxes?
-> My initial assumption (or perhaps, hope) is yes, however, I'm not certain since the capital losses (#7) are not specific to Virginia.
2. In Lieu of the answer to Question 1, how is Depreciation Recapture for Virginia calculated?

Appreciate the help.
Topic Author
abracadabra11
Posts: 195
Joined: Sat May 01, 2010 2:09 pm

### Re: Capital Gains and Depreciation on Rental Property Sale - Virginia (Non-Resident)

Follow-up to the original post. My initial rough calculation is as follows:
Capital Gains Tax (Virginia) = (\$40k - \$18k) * 0.0575 = \$1265
Depreciation Recapture (Virginia) = \$20k * .0575 = \$1150

Does that look roughly correct?

In the above example, I did not deduct current year Capital Losses due to TLH.
Topic Author
abracadabra11
Posts: 195
Joined: Sat May 01, 2010 2:09 pm

### Re: Capital Gains and Depreciation on Rental Property Sale - Virginia (Non-Resident)

Can anyone provide any guidance?