What is the capital gains tax?

The capital gains tax is a tax that is assessed on the profits made from the sale of investments. In Virginia, the capital gains tax is imposed on the sale of stocks, bonds, mutual funds, and other investments, as well as on the sale of real estate property. The capital gains rate imposed in Virginia is dependent on the individual income of the taxpayer. Taxpayers with an adjusted gross income (AGI) of $17,000 or less are exempt from paying the capital gains tax. Taxpayers with an AGI of $17,001 to $116,000 may be liable for a 4% capital gains tax rate, while taxpayers with an AGI of more than $116,001 may be liable for a 5.75% capital gains tax rate. Additionally, taxpayers may qualify for certain exemptions or deductions to lower their capital gains tax rate, such as the long-term capital gains tax rate. The long-term capital gains tax rate is typically lower than the regular capital gains tax rate and applies to the sale of assets that have been held for longer than a year. It is important to note that capital gains are subject to both federal and state taxes, and the capital gains tax rate can vary from state to state.

Related FAQs

How much money can I expect to get back in a tax refund?
Are Social Security benefits taxable?
Are there any tax credits available?
What is the tax rate for dividends?
What forms do I need to file an extension?
How do I file my taxes?
What is the tax rate for estates and trusts?
What is the tax rate for self-employment income?
What is a tax haven?
What is a tax lien?

What is the capital gains tax?

Related FAQs

Related Blog Posts