Florida Capital Gains Tax Laws – Essential Information!

Florida Capital Gains Tax Rates

August 23, 2004
By Niles Brohey

Capital gains tax in Florida is charged in the same general way as in the entire United States. It is charged at a variable rate which is set by several key indices. The three main factors setting the capital gains tax rate are: the rate of income tax you pay, the holding term of the asset you are trading, and what the asset you are trading is (this is significant id the asset is real estate or a collectible item). By exerting some control over how long you hold an asset and what assets you hold you can have some influence over what rate of tax you will be subjected to.

The holding term of the asset has a huge effect on the applicable rate of capital gains tax in Florida. Assets held for less than one year are considered to be short term assets and gains resulting from such assets are taxed at the same rate as your income. However the tax rate is much lower on assets which you have owned for one year or more. These assets are considered long term and are taxed at a rate determined by your income. People who pay 15% or less income tax will pay capital gains tax at 5%, people who pay higher rates of income tax will pay capital gains tax at 15%. These rates apply to all long term assets except real estate (which is always taxed at 25%) and collectibles (which are always taxed at 28%).

Another issue to be aware of when trading in capital assets in Florida is that a 30% capital gains levy is applied to non-residents of the US, this can have a significant effect so check it doesn't apply to you if you don't live in the United States. Some other information which is useful when trading in property in Florida is that on top of your capital gains tax is a 0.7% stamp duty which will be levied against the total value of the property.