Question

Virginia Capital Gains Tax

Forum|Forum|5 years ago
May 12, 2021
1 reply
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In 2018 I had Capital Gains Taxes on stock sold by my financial planner and stock i sold myself. All data was imported into TT and the Fed Ret treated all the same. The VA Ret pulled the Capital Gain from the stock I sold out; with a note "VA Handles some capital gains differently" But I never saw a chance to determine if this amount should be taxed or not. This year VA notified me that the stock I sold did not qualify for a VA exemption and demanded tax & penalty. I woued.ld have paid in 2018 if TT hadn't interven

Need to know why Turbo Tax VA didn't give me the opportunity to determine if my capital gains should be taxed by VA? Also will future editions of TT VA still have this issue?

Multiple States

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ThomasM125

You may be referring to the exemption from tax for capital gains on VA bond sales. There are screens in TurboTax that address that issue as follows:

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TiroAuthor

Thanks; my sales were not VA Bonds, it was a major company. The exemption seems to apply to new/small business (rev. $3M year or less. I knew my company did not qualify; however, I don't know why TurboTax thought it might qualify. In future I will know to override the exemption and make sure all my capital gains are reported and taxed.

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ThomasM125

I made an investment sale entry in TurboTax and noticed it showed up as taxable on the Virginia return. I remember hearing of an issue similar to yours a few years ago though, there may have been some confusing wording in TurboTax, but I don't see anything in the current program that is ambiguous.

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