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)

Post by abracadabra11 »

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)

Post by abracadabra11 »

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)

Post by abracadabra11 »

Can anyone provide any guidance?
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