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Schedule Fi-162 - Vermont Capital Gains Exclusion Calculation For Estates Or Trusts - 2012 Page 2

SCHEDULE FI-162

Capital Gains Exclusion for Estates or Trusts

If the Federal return shows a capital loss, do not complete this form.

INSTRUCTIONS

VT allows a portion of net adjusted capital gains, as defined by Internal Revenue Code Section 1(h), to be excluded

from VT taxable income, but in no case may the amount exceed 40% of federal taxable income. Taxpayers calculate

their capital gains exclusion and enter that amount on the VT Fiduciary tax return FI-161 at Line 4b from Part III

Line 21. Each line contains instructions directing you to the appropriate federal schedule and line numbers.

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 do not file Schedule D (Form 1041) enter the amount from Form 1041, Line 4 on Line 1.

If you have qualified dividends, you may add the amount on Form 1041, Line 2b(2) to the lesser of Lines 14a(2)

or 15(2) of Schedule D. If you did not file Schedule D, you can add the amounts from Line 2b(2) and Line 4 of

the 1041 and enter the total on Line 1.

Part II Percentage Exclusion

Taxpayers may opt to exclude 40% 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:

1. 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 FI-161, Line 4b.

Schedule Fi-162 - Vermont Capital Gains Exclusion Calculation For Estates Or Trusts - 2012 Page 2