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OT: Tax question

Discussion in 'Uncategorized Threads' started by Steve Campbell, Mar 3, 2007.

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  1. Steve Campbell

    Steve Campbell TS Member

    Joined:
    Jan 29, 1998
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    I have a tax issue that I'd like to clarify.

    My wife and I sold about 12 stocks in 2006. We computed estimated taxes of 15% since this is the supposed long term capital gains rate. This was paid as an estimated tax in July that was paid as federal taxes (check made out to US Treasury)

    Are we also responsible for state taxes on the actual profit from the sale or does the 15% cover the gains?

    Thanks in advance.
     
  2. dmarbell

    dmarbell Active Member

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    Stone,

    It depends on your state and it's tax rates. In NC where I am, you would have state tax on the gain. Some states, like FL, don't have an income tax.

    Danny
     
  3. Steve Campbell

    Steve Campbell TS Member

    Joined:
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    Live in Colorado, so I guess since I pay state taxes on my income from work that I will have to pay tax on this sale.

    Thanks
     
  4. dmarbell

    dmarbell Active Member

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    Stone,

    Based on a very quick search, it looks like CO starts with the federal numbers. There appears to be a subtraction for capital gains, but in very limited circumstances. See the site below, read the instructions carefully.

    Danny


    http://www.revenue.state.co.us/TPS_Dir/home.asp
     
  5. gbatch

    gbatch TS Member

    Joined:
    Jan 29, 1998
    Messages:
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    Call the Colorado Dept of Revenue and ask.
    Ditto what Danny said - read the instructions CAREFULLY.

    For federal purposes, Capital Gains are calculated on a separate schedule (I believe it's "D"). The result is then moved to the 1040.

    From the Colorado Revenue website:
    Qualified Colorado taxpayers may subtract certain net capital gain income earned from Colorado sources to the extent the gains are included in their federal taxable income. [ยง39-22-518, C.R.S.].

    Go here:
    http://www.revenue.state.co.us/fyi/html/income15.html

    I am not giving tax advice.

    Gene Batchelar
    Wheaton, IL
     
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