Does anyone know the long term capital gains tax rate? (low income, sales)

[bbnetworking]

Does anyone know the long term capital gains tax rate for NJ? Is it the same rate as the regular income tax rate? I googled, but couldn't find a table for it.

I sold some stocks in 2015, and it triggered some long term capital gains. Note, this is state tax rate, not federal. Thanks.

[Retriever]

I am aware of the federal rates (15% for most taxpayers, zero% for those with very low incomes, and 20% for the affluent), but I never gave much thought to NJ's tax rates for capital gains, simply because Turbo Tax carries everything over to my NJ return, with no input on my part.

The one thing that REALLY matters in a negative sense is that NJ doesn't allow you to deduct capital losses from your capital gains, and that can make a substantial difference in your NJ tax liability. In years when my capital gains are particularly good, I make sure that I can also claim some capital losses to offset the federal tax hit, but those capital losses have no effect on my capital gains on the NJ 1040--and that really hurts.

[boater1]

According to the NJ income tax web site.
Capital losses can be used to offset Capital gains.
But if you have net losses, you cannot substrate your losses from income
Losses can only reduce gains,

From the web site ...
Capital gains and losses must be reported in the year they are realized. Gains from installment sales must be reported in the same year that you report them on your Federal return. New Jersey does not differentiate between short-term and long-term capital gains.

Losses from the sale or exchange of property may only be used to offset gains from other sales or exchanges of property in the same tax year. New Jersey law makes no distinction between active and passive losses, nor does it allow you to carry losses forward or back to other tax years. Federal passive losses may be deducted in full in the year incurred from any gain in the same category of income, provided the gain occurred within the same year.

Your net gain or loss is determined on Schedule B by subtracting total losses from total capital gains. If this amount is zero or less, make no entry on the line for "Net Gains or Income From Disposition of Property" on your New Jersey income tax return.

[MaverickDD]

Originally Posted by bbnetworking

Does anyone know the long term capital gains tax rate for NJ? Is it the same rate as the regular income tax rate? I googled, but couldn't find a table for it.
I sold some stocks in 2015, and it triggered some long term capital gains. Note, this is state tax rate, not federal. Thanks.

Unlike federal income tax, there is no lowered tax-preferenced NJ rate for long-term capital gains. Net capital gains are taxed just like other taxable income on your NJ-1040. Hence, your marginal tax rate on your capital gain is that rate atop the rate on your other income.

Capital gains may be offset by capital losses incurred within the same year — regardless of holding period. But capital losses can be used to offset only capital gains. Have losses and no gains? Too bad, they evaporate! New Jersey has no carryover provision for capital losses.

[cw30000]

Originally Posted by MaverickDD

Unlike federal income tax, there is no lowered tax-preferenced NJ rate for long-term capital gains. Net capital gains are taxed just like other taxable income on your NJ-1040. (Capital gains may be offset by capital losses — regardless of holding period.)

Capital losses can be used to offset only capital gains. Have losses and no gains? Too bad, they evaporate! New Jersey has no carryover provision for capital losses.

Maverick is absolutely correct. One more reason to hate the NJ government.

[bbnetworking]

Originally Posted by MaverickDD

Unlike federal income tax, there is no lowered tax-preferenced NJ rate for long-term capital gains. Net capital gains are taxed just like other taxable income on your NJ-1040. Hence, your marginal tax rate on your capital gain is that rate atop the rate on your other income.

Capital gains may be offset by capital losses incurred within the same year — regardless of holding period. But capital losses can be used to offset only capital gains. Have losses and no gains? Too bad, they evaporate! New Jersey has no carryover provision for capital losses.

I think you are correct. If possible, it's best to move to a no "state income tax" state before triggering the large capital gains, but i needed the money.

State income tax isn't a small potato, it's 9% for gains over $500k.

If my math is correct: $500k - 20% (long term gains rate) - (3.8%) Obama care - NJ State income tax = $370k