Capital gains tax on an out of state rental

3 Replies

I live in California and own a rental in Washington state. When I sell the property will California tax me additional on top of the 15% federal capital gains tax?

@Jonathan Hulen

If you are reporting an overall gain(sales price - adjusted basis) then yes California will tax you on the sale of the rental in Washington State.

Also to point out - the federal capital gains rate can be 0%, 15% or 20% depending on your overall effective tax rate.