Capital gains tax in CA?
On the tax board website it says: California does not have a lower rate for capital gains. All capital gains are taxed as ordinary income. https://www.ftb.ca.gov/file/personal/income-types/capital-gains-and-losses.html So this means for someone making $400K, taxes paid on a long term sale would be: 15% federal capital gains tax 11.3% California tax rate = 26.3% total capital gains tax On top of the ~37% fed + state tax rates already paid on your income?
Feels bad man
Don't forget the net investment income tax (NIIT) of 3.8%
Wow! I had no idea. Plus all the other taxes that are paid (sales, property, etc) 🤯
It’s nice living in a tax free state, I get to keep 85% of my long term cap gains. I wonder if there’s a way around CA tax if you incorporate in a state without state income tax.
Wait till you find out about countries with zero short/long term capital gain tax...
Not possible, as long as you have some entity or association with California, you are obligated to pay taxes/capital gain
if you’re unlucky: 20% federal capital gains tax 3.8% federal net investment income tax 12.3% California capital gains tax (income tax) ——— 36.1% capital gains tax in California Fucking robbery with nothing to show for it. but hey, we got nature and good weather I guess
Malibu makes it worth it ;)