Fillable Form Fi-161 - Vermont Fiduciary Return Of Income

upon disposition of the taxpayer’s interest in the business; the

GENERAL INFORMATION

difference between depreciation using standard MACRS on assets

WHO MUST FILE A 2013 VT FIDUCIARY RETURN OF

qualified for 2013 Federal bonus depreciation and the reported

INCOME (Form FI-161)?

Federal depreciation on those qualified assets as a result of VT

A VT Fiduciary Return of Income must be filed for every estate

disallowance of the bonus depreciation; state and local income

and trust required to file a U.S. Income Tax Return for Estates and

taxes deduction on Form 1041, Line11 in excess of $5,000 with

Trusts and that earned or received more than $100 of VT income

(2) the subtraction of interest income from U.S. government

OR received $1,000 or more in gross income from the sources

obligations to the extent such income is included in Federal

listed under VT Portion on Schedule E.

adjusted gross income; capital gains exclusion; and as a result

A VT Fiduciary Tax Return must be filed for any Section 468B

of VT disallowance of the bonus depreciation, the difference

Designated and Qualified Settlement Funds required to file a

between depreciation using standard MACRS on assets qualified

Federal Form 1120-SF that earned or received more than $100 of

for prior year Federal bonus depreciation and the reported Federal

VT income OR that earned or received $1,000 or more in gross

depreciation on those qualified assets.

income from the sources listed under VT Portion on Schedule E.

VT Trust A trust is a VT trust if the settlor was a VT resident when

A VT Fiduciary Tax Return must also be filed for an Electing Small

the trust became irrevocable; or, if the trust is still revocable and

Business Trust required to file a Federal 1041.

the settlor was a VT resident when the trust was created. Also, a

trust is a VT trust if the settlor was domiciled in VT at his/her death.

A VT Fiduciary Tax Return filer may be entitled to certain State

incentives or credits.

EXTENSION TO FILE THE VT FIDUCIARY TAX RETURN

To receive a five-month extension of time to file the fiduciary

If you have any questions, contact the VT Department of Taxes

tax return, file a copy of the Federal extension request or a letter

at (802) 828-6820.

requesting an extension of time on or before the due date. NOTE:

NOTE: Use VT Income Tax Form IN-111, not this form, to report

An extension of time to file the Vermont Fiduciary Tax Return does

income of a decedent from the beginning of the tax year to the

not extend the due date for the tax payment. Interest and penalty

date of death.

accrue on any tax owed from the due date to receipt of payment.

DEFINITIONS

LATE-FILED RETURNS - Returns without an extension of

time may be filed up to 60 days after the due date without a late

Resident Estate means the estate of a decedent who was domiciled

file penalty charge. Returns without an extension filed on the

in Vermont at the time of death.

61st day after the due date or later will be charged a $50 late file

VT Income of a Resident Estate or Trust means the adjusted

penalty. Returns with an extension filed on or before the extended

gross income of a resident less income exempted from state

due date are not charged a late file penalty. However, returns with

taxation under the laws of the United States.

an extension filed one or more days after the extended due date

VT Income of a Nonresident Estate or Trust means the sum

are charged a $50 late file penalty. NOTE: The late file penalty

of the following items, to the extent the items are required to be

applies even if the return results in a refund or no tax due.

included in Federal adjusted gross income:

TAX DUE - Returns with tax due that are filed after the due date

•

Rents and royalties from ownership of property located

are assessed interest and late payment penalty charges on the

in VT

unpaid tax.

•

Gains from the sale or exchange of VT property including

AMENDING OR CORRECTING VT FIDUCIARY TAX

the sale of timber or timber rights

RETURN INFORMATION

•

Wages, salaries, commissions or other income received

VT law requires an amended VT return be filed within 60 days

for services performed in VT

of knowledge of the change, or receipt of the notice of change

•

Income from every business, trade, profession or

by IRS, or the filing of an amended return with the IRS. A late

occupation conducted in VT, including money received

file penalty will be assessed if the amended VT return is not filed

(1) under an agreement not to compete with a business

within the 60 days.

operation in VT, (2) for goodwill associated with the

•

Change to VT income An amended return is due even if the

sale of a VT business, or (3) for contractual services

change is not the result of filing an amended Federal tax return

associated with the sale of a VT business, unless it

or an adjustment made by the Internal Revenue Service; for

is shown that the compensation for services does not

example, the amount of income taxable to VT is different from

constitute income from the sale of the business

the amount originally reported. The amended return must be

•

VT income previously deferred under a non-qualified

filed within 3 years of the due date of the return, including

deferred compensation plan and income derived from

extensions.

such previously deferred income

•

Change of Federal tax information by IRS If the IRS

•

Examples of other income: gambling winnings including

adjusted the Federal taxable income, capital gains amount

lotteries, raffles or a lump-sum payment from the sale of

or any other change that affects the VT tax, an amended

a right to receive a future lottery annuity.

VT Fiduciary tax return must be filed within 60 days of

VT Income of Part-Year Resident Estate or Trust means any

notification by the IRS, even if this is past the 3-year limit.

income described in VT Income of a Nonresident Estate or Trust

Attach a copy of all Federal forms showing changes to the

and all items earned or received during the period of VT residency

VT amended return. The IRS and VT Department of Taxes

described in VT Income of a Resident Estate or Trust.

routinely share information. Differences in the information on

VT Taxable Income means Federal taxable income with (1)

file with the IRS and the VT Department of Taxes, other than

the addition of interest, dividends or other distributions from

those allowed by VT law, are identified and may be audited.

non-VT state and local obligations to the extent this income is

•

Filing an Amended Federal tax return Filing an amended

excluded from Federal adjusted gross income; the capital gain

VT return is required within 60 days of filing an amended

deferral in a previous year for investment in a qualified business

Form Fi-161 - Vermont Fiduciary Return Of Income - 2013 Page 2

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