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For tax purposes, when you sell an investment for more than you bought it, you realize a capital gain. This gain is taxable, and the tax rate depends on the length of time you hold the stock before selling it. Short-term capital gain: A short-term capital gain occurs when you sell assets you owned for one year or less.
Gains from intangibles (including stocks, bonds, and ownership interests in privately held businesses) are taxed if the seller is domiciled (i.e., permanently resides) in Washington.
Background. The 2021 Washington State Legislature recently passed ESSB 5096 (RCW 82.87) which creates a 7% tax on the sale or exchange of long-term capital assets such as stocks, bonds, business interests, or other investments and tangible assets. This tax only applies to individuals.
In Washington, a 0.58 percent payroll tax to fund a mandatory long-term care insurance program will take effect July 1, 2023, following litigation that resulted in various legislative changes and delays.
The Washington Repeal 7% Capital Gains Tax Initiative is not on the ballot in Washington as an Initiative to the Legislature, a type of indirect initiated state statute, on November 7, 2023.
There is an exclusion on capital gains up to $250,000, or $500,000 for married taxpayers, on the gain from the sale of your main home. That exclusion is available to all qualifying taxpayers?no matter your age?who have owned and lived in their home for two of the five years before the sale.