On May 2021, Washington Governor Jay Inslee signed legislation ESSB 5096, which enacted a capital gains tax equal to 7% of a Washington resident’s adjusted long-term capital gains. This new 7% capital gains tax is on the sale or exchange of long-term assets including stocks, bonds, and other types of assets and investments. This capital gains tax is not for real estate sale or exchanges.
The capital gains account requires a Secure Access Washington (SAW) account which you can create thru the MyDOR website (dor.wa.gov). This is an electronic reporting system and no paper form is available.
The Washington Department of Revenue will compare this report to Schedule D and Form 8949 of the Federal Form 1040. There are deductions, exemptions, and exclusions.
Currently for 2024 the standard deduction for this capital gains tax is $270,000 for individual and joint or separate return.
The due date to file and pay this capital gain tax return is on or before April 15th. As with all extensions, an extension of time to file is not an extension of time to pay. To receive an extension for filing your Washington Capital Gains return you must request an extension for your capital gains tax return by submitting a request electronically through MyDOR (dor.wa.gov) on or before April 15. To qualify for the extension, you must have received a filing extension for your federal income tax return.
AccounTax can help with the processing of this form Capital Gains Tax Return. Please contact our office.
