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Do you have to pay capital gains to the state of n.y. for the sale of an apt. in n.y.c. I have exceeded my deduction and the sale is a little over one million. If I do owe the state is their a set percentage or is it treated like regular income?

Yes, the sale is definitely taxable to NYS and possibly taxable to NYC (if the seller is a NYC resident). Neither has a special capital gains rate, so the taxable gain will be taxed as ordinary income. The sale price is irrelevant, it's the gain that counts.

NYS also imposes a real estate transfer tax based on the sales price. The rate is $2 per every $500 of value or fraction thereof. There is also a "mansion" tax of 1% assessed on residential real estate sales of more than $1million.

Ira
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