As Florida has no state income tax, there are also no state-level capital gains. Investors in Florida need to pay shortterm capital gains tax on assets bought and sold in less than a year.Use Form 4797 to report: The sale or exchange of property. The involuntary conversion of property and capital assets. The amount of tax that you will ultimately have to pay depends upon whether the money you make from the sale is taxed as ordinary income or capital gains. In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity.