Bill > HB1210

This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, allows an individual income tax subtraction for income that is taxed as a long-term capital gain for federal income tax purposes, specifically from the sale of a principal residence, and that exceeds the federal limitations. The federal limitations, as outlined in Section 121(b) of the Internal Revenue Code, generally allow individuals to exclude up to $250,000 of gain from the sale of their principal residence from their taxable income, or $500,000 for those filing jointly, provided they have owned and lived in the home for at least two of the five years preceding the sale. This bill provides a subtraction for any capital gain that exceeds these federal exclusion amounts, effectively reducing the state taxable income for those who sell their primary home and have gains above the federal thresholds.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB1210