Navigating the New Capital Gains Tax Landscape: Insights from PRK Livengood

Washington’s New Capital Gains Tax

Recently, the Washington Supreme Court upheld a new capital gains tax, sparking discussions, debates, and uncertainty among businesses and professionals alike.

In 2021, Washington introduced a capital gains tax, which faced legal challenges for being an unconstitutional income tax. However, in March, the state Supreme Court ruled in its favor, categorizing it as a valid excise tax. The tax imposes a 7% levy on profits over $250,000 from sales or transfers of assets like stocks and bonds.

At a recent gathering, a variety of business professionals including Gregory Russell, a partner at Peterson Russell Kelly Livengood, shared insights on the nuances of the new capital gains tax. The discussions revolved around its impacts, exemptions, deductions, mitigations, and how they are being strategically factored into advice for clients.

What does this mean for businesses in Washington?

The new capital gains tax will have varying implications based on the size, nature, and revenue of businesses. From small “mom and pop” companies to large enterprises, it’s crucial for businesses to re-evaluate their financial strategies.

How Can PRK Livengood Assist You?

Greg Russell has been practicing business transactional work for more than three decades. His involvement in the recent discussions on the new capital gains tax is a testament to his commitment guiding businesses through complex landscapes.

The landscape of business is ever-evolving. With changes like the new capital gains tax, it’s essential to have trusted advisers by your side. At PRK Livengood, we’re here to guide businesses every step of the way. Whether it’s understanding the new tax implications, planning a business acquisition, or seeking general business advice, our team is here to help.