wa-law.org > bill > 2025-26 > HB 1601 > Original Bill
In computing tax for a taxable year, a taxpayer may deduct from his or her Washington capital gains:
A standard deduction of $250,000 per individual, or in the case of spouses or domestic partners, their combined standard deduction is limited to $250,000, regardless of whether they file joint or separate returns. The amount of the standard deduction shall be adjusted pursuant to RCW 82.87.150;
Amounts that the state is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States;
The amount of adjusted capital gain derived from the sale or transfer of the taxpayer's interest in a qualified family-owned small business pursuant to RCW 82.87.070;
Charitable donations deductible under RCW 82.87.080; and
The amount of any monetary or capital asset that was lost by a person due to a criminal act as described in chapter 9.35, 9.38, 9.45, 9A.60, or 9A.90 RCW, where part of the criminal act involved the inducement of the sale of any capital asset and is evidenced by the provision of a police report or similar documentation.
RCW 82.32.805 and 82.32.808 do not apply to this act.
This act applies retroactively and prospectively.
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.