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VA SB139

VA SB139
Income tax, state; subtraction for long-term capital gains from sale of principal residence.


summary

Introduced
01/06/2026
In Committee
01/06/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Regular Session

Bill Summary

Individual income tax subtraction; long-term capital gains from sale of principal residence. Provides an individual income tax subtraction in taxable years 2025 through 2029 for income that is (i) taxed as a long-term capital gain for federal income tax purposes, (ii) attributable to the sale of property that served as the taxpayer's principal residence for at least two of the five years preceding such sale, and (iii) in excess of federal limitations only allowing an exclusion from gross income for up to $250,000, or $500,000, for joint filers, of gain from such a sale.

AI Summary

This bill, for taxable years 2025 through 2029, allows individuals to subtract from their Virginia taxable income any income that is taxed as a long-term capital gain for federal income tax purposes, provided it comes from the sale of their principal residence. This subtraction applies to the portion of the gain that exceeds the federal limitations, which currently allow an exclusion of up to $250,000 for single filers and $500,000 for joint filers on the sale of a principal residence. The property must have been the taxpayer's principal residence for at least two of the five years preceding the sale.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Continued to next session in Finance and Appropriations (13-Y 0-N) (on 01/28/2026)

bill text


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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/SB139
Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/18/2026 4:58 pm) https://lis.blob.core.windows.net/files/1090055.PDF
BillText https://lis.virginia.gov/bill-details/20261/SB139/text/SB139
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