(2) "Authorized shares" means the shares of all classes a domestic or foreign corporation is authorized to issue. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.The Washington capital gains tax adopts the federal definition of "capital asset" when determining the taxable gain from a sale or transfer of the asset. What is the Washington State capital gains tax? In 2021, Washington state enacted a law imposing a capital gains tax on the sale of specific assets. For forms and information, go to ftb.ca. Gov and search for forms and publications.