Instructions For Capital Gains Exclusion (Schedule In-153) printable pdf download

Instructions For Capital Gains Exclusion (Schedule In-153)

SCHEDULE IN-153

Capital Gains Exclusion

VT allows a portion of net adjusted capital gains (as

INSTRUCTIONS

defined in Internal Revenue Code Section 1(h) ) to be

PART I and PART II

excluded from VT taxable income. The exclusion

calculation changes for tax year 2009:

NOTE: If you have capital gains from the sale of farm

or standing timber, do not enter these sales on Part I or

40% Exclusion Method - Capital gains occurring from

Part II. Enter the information directly on Part IV.

January 1 to June 30, 2009 receive exclusion of 40%

of the capital gain or 40% of Federal taxable income,

Part I and Part II are pro forma Federal schedules for VT

whichever is less.

purposes to separate the capital gains into those

occurring from January 1 to June 30, 2009 and July 1

Flat Exclusion Method - Capital gains occurring from

to December 31, 2009. Line instructions direct you to

July 1 to December 31, 2009 receive exclusion of the

the appropriate Federal schedule and line numbers.

capital gain amount, up to a maximum of $2,500.

Taxpayers age 70 or older - Calculate the exclusion at

PART III

40% of the capital gain or 40% of Federal taxable

Part III calculates the capital gain exclusion for gains

income, whichever is less, for capital gains occurring

other than for farm or standing timber sales. The

from January 1 to June 30, 2009. For capital gains

amount on Line 63 is the 2009 capital gain exclusion. If

occurring from July 1 to December 31, 2009, you may

you are age 70 or older, complete Lines 64 to 68 to

elect to use either the Flat Exclusion Method or the 40%

calculate the 2009 capital gain exclusion.

Exclusion Method. For a jointly filed return, only one of

the taxpayers needs to be age 70 or older to qualify for

PART IV

this election.

Part IV calculates the capital gain exclusion on farm or

Capital gains from sale of farm or standing timber - The

standing timber sales only. If you have capital gains

gains from these specific sale types receive exclusion of

from sales other than farm or standing timber, complete

40% of the capital gain or 40% of Federal taxable

Part III and enter the amount on Line 73.

income, whichever is less, regardless of the date the

gain occurred in 2009. If you have capital gains from

sales other than farm or standing timber, the 2009

exclusion for those gains is calculated using the

applicable method and then added to the exclusion for

sale of farm or standing timber.

Instructions For Capital Gains Exclusion (Schedule In-153)

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