Capital Gains - My DOR help | Washington Department of Revenue

For help with account setup, updating information on your account, adding/editing/removing user access, sending secure messages, and making payments, refer to the other topics on the My DOR Help page.

Register

To register a capital gains account, you will need a SecureAccess Washington (SAW) account. If necessary, you can check if you have a SAW account, or create a SAW account.

Create a capital gains account

On dor.wa.gov click the Log in button.
Enter your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, in the Capital Gains section, click the Create a Capital Gains Account link.
On the Taxpayer Information page, enter the taxpayer’s First Name, Last Name, select the ID Type, enter and confirm the ID, select the Phone Type, enter the Phone Number, then click Next. If a Capital Gains account already exists for the taxpayer, you will see the Existing Account Found page.
On the Residential Address page, enter the residential address. You must select the Verify Address button to confirm the address.
Select Yes or No to answer the question Is your mailing address the same as your residential address?
- If Yes, click Next and continue to Step 8.
- If No, click Next and continue to Step 7.
On the Mailing Address page, enter the mailing address. You must select the Verify Address button to confirm the address. Then click Next.
On the Summary page, review the information.
- If any updates are necessary, click the Previous button to navigate back.
- If the information is complete and accurate, click the Submit button.
On the Confirmation page, print a copy of the confirmation by clicking Print Confirmation (This Page) and using your browser options to either print or save it as a PDF.
On the Confirmation page, click OK.
Click on the Summary tab to proceed with filing a return.

File and amend with access to the account

The following services are available when you have access to the capital gains account.

Request a capital gains tax filing extension with access to the account

If you have obtained an extension of time for filing the federal income tax return for the taxable year, you are entitled to the same extension of time for filing the return required if you provide the department, before the due date, the extension confirmation number or other evidence satisfactory to the department confirming the federal extension. Keep in mind filing extension does not extend the due date for paying the capital gains tax due.

File a capital gains return

On dor.wa.gov click the Log in button.
Enter your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, click Get Started.
In the Capital Gains Return panel, click the Request a Return Extension link.
On the Extension Request page, click the checkbox certifying you have an approved extension for your federal tax return, then click Next.
On the Submitter information page, enter the Prepared by, Phone number, and Email address of the preparer, then click Submit.
On the Confirmation page, print a copy of the confirmation by clicking Print Confirmation and using your browser options to either print or save it as a PDF.
- This extension is for filing your return only. You must still submit an estimated tax payment by the due date. To make a payment follow the steps in the Make a payment help topic.
- Failure to make a timely estimated payment may result in penalties and interest being assessed.
On the Confirmation page, click OK.

File a capital gains tax return with access to the account

Accessing a tax return

On dor.wa.gov click the Log in button.
Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, click Get Started.
In the Capital Gains Return panel, click the File Return link.

Taxpayer filing status

You can save the return at any time by clicking the Save Draft button.

Select the Filing status using the drop-down menu. This should match your filing status on your federal tax return.
- If you selected Single, click Next to continue.
- For any other selection, select the ID type, and enter the ID number, First name, and Last name of the Secondary taxpayer.
Click Next.

Enter total capital gains

Enter your Federal net long term capital gains/losses.
If applicable, enter:
- Total of gains/losses not allocated to WA
- Loss carryforward not allocated to WA (this must be entered as a negative number)
The Long term capital gains/losses allocated to WA will be calculated based on the numbers you enter.
Click Next.

Gains/losses allocated to WA

The Gains/losses allocated to WA page displays the Long term capital gains/losses allocated to WA calculated on the previous page.
On this page, you will itemize the list of assets that equals the Long term capital gains/losses allocated to WA.
- To upload the gains/losses allocated to Washington data using the Capital Gains Upload Template, select Yes, click the Click here to download the Capital Gains Upload Template link, follow the instructions in the template, click the Upload Return button, enter a Description, choose the file to attach, click OK, and continue to step 5. You can also upload the charitable donation deduction data and taxes paid to other jurisdictions data at the same time using the same file.
- To input the gains/losses allocated to Washington data manually, follow the steps below.

Click the Add Item link. A new tab opens where you will provide information about the asset.
Enter the Description of the asset, Proceeds (sale price), and Cost or other basis. The Gain or loss will auto-calculate.
If applicable, click the checkbox to indicate if the item is Washington exempt and select the WA exemption type using the drop-down menu. Click the Is this item Washington exempt? link to learn more.
Repeat Steps 1 through 3 to add all assets. As you add each asset, the Total proceeds, Total cost basis, Total of gains/losses allocated to WA, and Total of exemptions fields will auto-calculate.
Click the Gains/losses allocated to WA tab to review the asset list and verify the Total of gains/losses allocated to WA amount equals the Long term capital gains allocated to WA amount.
- If you added an asset in error, click the tab for that asset, click the Remove Item link, and click Yes to confirm.
- If you need to edit an asset, click the tab for that asset, and update as necessary.
Click Next.

Charitable donation deduction

The Charitable donation deduction page calculates the total charitable donation deduction.
On this page, you will itemize the list of donations made during the return period.
Charitable donation requirements are outlined in RCW 82.87.080.
- If you already uploaded the charitable donation deduction data with the gains/losses allocated to Washington data continue to step 5.
- To upload the charitable donation deduction data using the Capital Gains Upload Template, select Yes, click the Click here to download the Capital Gains Upload Template link, follow the instructions in the template, click the Upload Return button, enter a Description, choose the file to attach, click OK, and continue to step 5.
- To input the charitable deductions data manually, follow the steps below.

Click the Add Donation link. A new tab opens where you will provide information about the donation.
Enter the Charity donated to, Date donated, and Amount donated. The Gain or loss will auto-calculate. The Date donated must be in the same year as the return period.
If applicable, click the checkbox to indicate if the donation is directed or managed in WA.
Repeat Steps 1 through 3 to add all donations. As you add each donation, the Total charitable donation, Total WA charitable donation, Total WA charitable donation after minimum, and Total charitable donation deduction fields will auto-calculate.
Click the Charitable donation deduction tab to review the deduction list.
- If you added a deduction in error, click the tab for that deduction, click the Remove Donation link, and click Yes to confirm.
- If you need to edit a donation click the tab for that donation, and update as necessary.
Click Next.

Qualified family-owned small business deduction

The Qualified family-owned small business deduction page calculates the total qualified family-owned small business deduction.
On this page, you will itemize the list of qualified family-owned businesses sold.

Click the Add a Record link. A new tab opens where you will provide information about the business sold.
Enter the Business name.
Select Yes or No to answer the question does your business meet the definition of qualifying interest outlined in RCW 82.87.070.
- If Yes, continue to Step 4.
- If No, the transaction does not meet the requirements for the deduction.
Select Yes or No to answer the question did you hold a qualifying interest for at least 5 years immediately preceding the sale or transfer.
- If Yes, continue to Step 5.
- If No, the transaction does not meet the requirements for the deduction.
Select Yes or No to answer the question did the business have gross revenue of $10,000,000 or less in the 12 months preceding the sale or transfer.
- If Yes, continue to Step 6.
- If No, the transaction does not meet the requirements for the deduction.
Select Yes or No to answer the question did you materially participate in operating the business for at least 5 of the 10 years immediately preceding the sale or transfer.
- If Yes, continue to Step 7.
- If No, select Yes or No to answer the question was the sale or transfer to a qualifying heir.
  - If Yes, continue to Step 7.
  - If No, the transaction does not meet the requirements for the deduction.
Enter the Long term capital gain from sale.
Repeat Steps 1 through 7 to add all businesses sold. As you add each sale, the Total qualified family-owned small business deduction field auto-calculates.
Click the Qualified family-owned small business deduction tab to review the list of businesses sold.
- If you added a business sale in error, click the tab for that business, click the Delete this Record link, and click Yes to confirm.
- If you need to edit a donation click the tab for that donation, and update as necessary.
Click Next.

Other deductions

If applicable, enter a description of the deduction in the Description of deduction column and the amount in the Deduction column. An additional row will appear.
Enter additional other deductions as necessary.
- As you add other deductions, the Total other deductions field auto-calculates.
- If you need to delete an other deduction, click X next to the description, then click Yes to confirm.
Click Next.

Taxes paid to other jurisdictions

The Taxes paid to other jurisdictions page calculates the total credit of capital gains paid to other jurisdictions.
On this page, you will itemize the capital gains tax paid to other jurisdictions during the return period.
- If you already uploaded the taxes paid to other jurisdictions data with the gains/losses allocated to Washington data and charitable donation deduction data continue to step 7.
- To upload the taxes paid to other jurisdictions data using the Capital Gains Upload Template, select Yes, click the Click here to download the Capital Gains Upload Template link, follow the instructions in the template, click the Upload Return button, enter a Description, choose the file to attach, click OK, and continue to step 7.
- To input the taxes paid to other jurisdictions data manually, follow the steps below.

Click the Add a Record link. A new tab opens where you will provide information about the asset.
Enter the Description of the asset.
Select the Country using the drop-down menu.
Select the State/territory using the drop-down menu.
Enter the Tax paid. The Total credit of capital gains paid to other jurisdictions will auto-calculate.
Repeat Steps 1 through 5 to add all assets. As you add each asset, the Total credit of capital gains paid to other jurisdictions field will auto-calculate.
Click the Taxes paid to other jurisdictions tab to review the asset list and verify the Total credit of capital gains paid to other jurisdictions amount is correct.
- If you added an asset in error, click the tab for that asset, click the Delete this Record link, and click Yes to confirm.
- If you need to edit an asset, click the tab for that asset, and update as necessary.
Click Next.

Summary

Review the return information entered. If necessary, click the Previous button to navigate back and update the return.
Click Next.

Return totals

If you filed your return late, you will see the Return totals page.

Review the information.
To request a penalty waiver, first click the Request penalty waiver checkbox.
- Select if you would like to be considered for a late return penalty waiver by clicking Yes or No. Next, select if you will pay the return penalty amount by selecting Yes or No.
- Select if you would like to be considered for a late payment penalty waiver by clicking Yes or No. Next, select if you will pay the payment penalty amount by selecting Yes or No.
- Then, provide an explanation in the Penalty waiver explanation field.
Click Next.

Upload attachments

Review the list of required attachments.
Attach each attachment by clicking Add Attachment, entering in the Description of the file, clicking Choose File and selecting your file, then clicking OK.
If you are unable to upload a required attachment, click the I am unable to upload my federal return checkbox. You will need to mail a copy of your federal return and include the cover letter on page 1 of the printable view of the return. After you submit this return, click Printable View on the Confirmation page to print the cover letter.
Click Next.

Submitter information

Enter the Prepared by, Phone number, and Email address of the preparer.
Click Next.

Select payment type

Select the payment type you wish to use and follow the prompts. More information on payment options.
- Bank Account (ACH Debit) will deduct the payment from the bank account you select on the next page.
- Credit or Debit Card will charge the card you provide on the next page. A 3.25% processing fee is charged by a third party vendor for this service. Enter your email address. Click the Enter Card Information button to be redirected to a third party vendor to complete the transaction.
- Contact your bank account to initiate payment (ACH Credit). Learn more.
- No Payment will allow you to submit the return without making a payment. Interest may apply if the payment is not received by the due date.
Click Next.
Click Submit.

Confirmation

To print a copy of the return, click Printable View and use your browser options to either print or save it as a PDF.
To print the Confirmation page, click Print Confirmation and use your browser options to either print or save it as a PDF. This option is only available on this page. If you want to print or save it, print before you leave this page.
If you have a credit and would like to receive the payment electronically, you can add or update an electronic refund bank account, otherwise you will receive a check.
On the Confirmation page, click OK.

Submit a previously saved draft of a capital gains return with access to the account

If you saved a draft of a return, you can come back and file it at a later time.

On dor.wa.gov click the Log in button.
Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, click Get Started.
In the Capital Gains Return panel, click the Edit Return link.
The return is now available for you to walk through and make changes. Follow the steps in the File a Capital Gains Tax Return with Access to the Account section for help completing the return.

Amend a capital gains tax return with access to the account

On dor.wa.gov click the Log in button.
Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, click Get Started.
In the Capital Gains Tax Account panel, click the View Periods and Amend Returns link.
Click the Period link you want to amend. The summary of the period displays.
Click the File, View, or Amend a Return link. The summary of the return displays.
Click the Amend link.
The return is now available for you to walk through and make changes.
- To update amounts, you can type over the original amounts in the return.
- Advance through the pages of your return by clicking the Next button.
If applicable, review the information on the Return totals page. To request a penalty waiver, first click the Request penalty waiver checkbox.
- Select if you would like to be considered for a late return penalty waiver by clicking Yes or No.
- Next, select if you will pay the return penalty amount by selecting Yes or No.
- Select if you would like to be considered for a late payment penalty waiver by clicking Yes or No.
- Next, select if you will pay the payment penalty amount by selecting Yes or No.
- Then, provide an explanation in the Penalty waiver explanation field.
Review the information on the Summary page, then proceed through the return by clicking the Next button.
On the Submitter information page, enter the Prepared by, Phone number, Email address of the preparer, and a brief explanation of the reason for the amendment. If there is an additional amount due on the amended return, you’ll see the Next button. If you have no additional amount due or a credit, you’ll see the Submit button.
If there is an additional amount due on the amended return, you’ll be guided through the payment process. If you have no additional amount due or a credit, the Confirmation page displays. Print a copy of this page by clicking Print Confirmation. To print a copy of the return, click Printable View. If you have a credit and would like to receive the payment electronically, you can add or update an electronic refund bank account, otherwise you will receive a check.
On the Confirmation page, click OK.

File and pay without access to the account

The following services are available without having access to the capital gains account. We strongly encourage you to gain access to your account using a letter ID. Gaining access will allow you to view previously filed returns, payments, extension requests, and important correspondence from the Department of Revenue.

Pay without filing a capital gains tax return without access to the account

To make a payment, you must first register for a Capital Gains tax account.

This service allows you to make a payment without having access to the account before the return is filed. You will not be able to view the request once it has been processed.

We strongly encourage you to gain access to your account using a letter ID. Gaining access will allow you to view previously filed returns, payments, extension requests, and important correspondence from the Department of Revenue.

On dor.wa.gov click the Log in button.
Enter your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, in the Capital Gains section, click the Pay Without Filing link.
On the Enter your ID page, select the taxpayer’s ID type using the drop-down menu, enter and verify the taxpayer’s ID number, then click Next.
On the Contact information page, enter the taxpayer’s First name, Last name, Phone number, and Email address, then click Next.
On the Address information page, enter the taxpayer’s mailing address. You must select the Verify Address button to confirm the address. Then, click Next.
On the Filing Period page, select the filing period using the radio button, then click Next.
On the Payment Method page, select the payment type you wish to use, enter the reason for the payment, and follow the prompts. More information on payment options.
- Bank Account (ACH Debit) will deduct the payment from the bank account you select on the next page.
- Credit or Debit Card will charge the card you provide on the next page. A 3.25% processing fee is charged by a third party vendor for this service. Enter your email address. Click the Enter Card Information button to be redirected to a third party vendor to complete the transaction.
Click Next.
On the Submitter Information page, enter the Prepared by, Phone number, and Email address of the preparer, then click Next.
On the Summary page, review the information, then click Submit.
On the Confirmation page, to print a copy of the return, click Printable View and use your browser options to either print or save it as a PDF.
- If this is an estimated payment, you must still file your capital gains tax return by the due date.
- If you received a filing extension for your federal income tax return, you may also request an extension for the Washington capital gains return by following the steps in the Request a capital gains tax filing extension without access to the account help topic.
On the Confirmation page, click OK.

Request a capital gains tax filing extension without access to the account

To request a filing extension, you must first register for a Capital Gains tax account.

This service allows you to request a filing extension without having access to the account before the return is filed. You will not be able to view the request once it has been processed.

On dor.wa.gov click the Log in button.
Enter your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
On the My DOR Services page, in the Capital Gains section, click the Request a Filing Extension link.
On the Enter your ID page, select the taxpayer’s ID type using the drop-down menu, enter and verify the taxpayer’s ID number, then click Next.
On the Contact information page, enter the taxpayer’s First name, Last name, Phone number, and Email address, then click Next.
On the Address information page, enter the taxpayer’s mailing address. You must select the Verify Address button to confirm the address. Then, click Next.
On the Extension Request page, click the checkbox certifying you have an approved extension for your federal tax return, then click Next.
On the Submitter information page, enter the Prepared by, Phone number, and Email address of the preparer, then click Submit.
On the Confirmation page, print a copy of the confirmation by clicking Print Confirmation and using your browser options to either print or save it as a PDF.
- This extension is for filing your return only. You must still submit an estimated tax payment by the due date. To make a payment follow the steps in the Pay without filing a capital gains tax return without access to the account help topic.
- Failure to make a timely estimated payment may result in penalties and interest being assessed.
On the Confirmation page, click OK.

File a capital gains tax return without access to the account

To file a return, you must first register for a Capital Gains tax account.

This service allows you to file a return without having access to the account. You will not be able to view the request once it has been processed.