Schedule In-153 - Vt Capital Gains Exclusion

Schedule In-153 - Vt Capital Gains Exclusion - 2012 Page 2

SCHEDULE IN-153

Capital Gains Exclusion

Vermont allows a portion of net adjusted capital gains, as defined by Internal Revenue Code Section

1(h), to be excluded from Vermont taxable income. Taxpayers may elect either the Flat Exclusion or

the Percentage Exclusion. The amount excluded under either method cannot exceed 40% of federal

taxable income.

If your 2012 Form 1040 shows a capital loss, you are not eligible to complete this form. No

Vermont exclusion is available when a net capital loss is reported, even if the sale of farm or

standing timber resulted in a capital gain.

Part I Flat Exclusion

The general exclusion amount for tax year 2012 is $5,000 or the actual amount of net adjusted capital

gains, whichever is less.

Special instructions for Line 1.

• If you did not file Schedule D (Form 1040), enter the amount from Form 1040, Line 13 on

Line 1.

• If you have Qualified Dividends, you may add the amount on Form 1040, Line 9b to the lesser

of Lines 15 or 16 of Schedule D. If you did not file Schedule D, you can add the amounts from

Line 9b and Line 13 of Form 1040 and enter the total on Line 1.

Part II Percentage Exclusion

Taxpayers may opt to exclude 40% percent of their adjusted net capital gain from the sale of assets held

for more than three years. Only certain categories of capital gain income are eligible for this exclusion.

Capital Gains from the sale of the following assets are NOT Eligible For Exclusion under the

Percentage Method even if they have been held for more than three (3) years:

Real estate or a portion of real estate used as a taxpayer’s primary or nonprimary home.

2. Depreciable personal property (except for farm or standing timber).

3. Stocks or bonds which are publicly traded or traded on an exchange.

4. Any other financial instrument.

Part III Capital Gain Exclusion Amount

This part applies the limitation of 40% of federal taxable income and calculates your capital gain

exclusion. Enter the amount from Line 21 on Form IN-111, Line 14b.

Schedule In-153 - Vt Capital Gains Exclusion - 2012 Page 2