The fact that W is a resident individual is immaterial concerning the capital gains because the principal will eventually go to S and D. The same is true with selling a home (or a second home), but there are some special considerations. Real estate withholding remittance: The buyer should retain one copy of the remittance form with the other records pertaining to the closing, one copy of the remittance form should be given to the seller and the original is sent to the Rhode Island Division of Taxation with the payment indicated. Additional State Capital Gains Tax Information for Rhode Island. Thus, one-half of the retained income (capital gains) is subject to Rhode Island personal income tax and a Rhode Island 1041 form is required to be filed. 5. Understanding Capital Gains in Real Estate . The Combined Rate accounts for Federal, State, and Local tax rate on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent). When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for.
How to Calculate Gain