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