0

I'm trying to figure out how much (if at all) do I have to pay for some long-term (and short-term) capital gains made in 2014, to the State of Iowa (where I reside). This is the instruction given:

LINE 6. Capital Gain/Loss: Enter 100% of any capital gain or loss as reported on line 13 of your federal 1040. Do not subtract any Iowa capital gain deduction on this line.

So, is there any way to find out what is the deduction rate for long-term vs short-term gains? The IRS has a very helpful rate of 0% as long as my total income is within the 15% tax bracket, is that not the case for Iowa?

2

Iowa doesn't have short term or long term capital gains taxes. Instead, your income is taxed as ordinary income, but you get "capital gains deduction" for qualified transactions. You need to fill the checklist for each transaction to determine if it is qualified.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.