Washington State (so far a no-income tax state) is trying to pass a new 7% tax on long term capital gains in excess of $250,000, effective 1/1/2022. The bill was challenged in court as unconstitutional. There isn't a final verdict yet, but the court has authorized the state to implement the tax and collect it. In case the tax is finally ruled invalid, the amounts collected will be reimbursed with interest.
See here: https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax
Earlier in the year, it wasn't clear yet that the tax would be in fact collected in spite of the court ruling still being pending... so with the markets declining I liquidated a bunch of company stock and other highly appreciated holdings thinking that if passed, the tax would be effective for 2023. Well, that backfired I will have to pay a fat tax bill to the state and can't but hope for an invalid ruling and getting that money back at some point.
Anyone else in WA state in a similar situation here? Misery loves company
See here: https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax
Earlier in the year, it wasn't clear yet that the tax would be in fact collected in spite of the court ruling still being pending... so with the markets declining I liquidated a bunch of company stock and other highly appreciated holdings thinking that if passed, the tax would be effective for 2023. Well, that backfired I will have to pay a fat tax bill to the state and can't but hope for an invalid ruling and getting that money back at some point.
Anyone else in WA state in a similar situation here? Misery loves company