Assets held in certain retirement accounts

From the 2024 DOR Tax Exemption Study

Jacob Allen From: CALEB D ALLEN <calebdallen@comcast.net> Sent: Thursday, April 29, 2021 7:42 PM To: Mike Roben; Caleb Allen Subject: [External] capital gains tax The Washington State Legislature Approves Excise Tax on Capital Gain Income by Adam Cline, Partner, and Mark Hawkins, Director, State & Local Tax Services APRIL 29, 2021 On April 24 and 25, 2021, the Washington State Legislature approved the reconciled Senate Bill 5096 (SB 5096), a measure that imposes a capital gains tax (CGT) on long-term capital gain income. Here, we answer some commonly asked questions about the new tax. Who’s Impacted by the New Capital Gains Tax? Beginning January 1, 2022, CGT is imposed on Washington State residents and nonresidents at a rate of 7% on the sale or exchange of long-term capital assets in excess of $250,000. Legal entities aren’t subject to the CGT, though individual owners of legal entities can be subject to this tax on their beneficial interest in an entity’s capital gain income. What’s Included in Capital Gain Income? A taxpayer is subject to the CGT on their Washington capital gains, which means their federal long- term capital gain income as modified by Washington law. Exemptions