If I sell my producing Texas mineral rights, would I pay state capital gains if I am a California resident? If my sister, who is a Texas resident, sold hers would she pay state capital gains?
I’m not familiar with CA taxes, but I thought capital gains was a federal tax? Any accountants want to chime in?
Federal taxes will be due on any capital gains. States with income taxes, such as California, will generally tax capital gains as well. Texas has no state income tax. Best to consult your CPA about this.
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Thanks. Yes, Fed cap gains is a given. Just didn’t know about CA capital gains. But I just read that “California taxes all capital gains as regular income. It does not recognize the distinction between short-term and long-term capital gains. This means your capital gains taxes will run between 1% up to 13.3% , depending on your overall income and corresponding California tax bracket.”
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