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Instructions For Schedule Fi-162 Capital Gains Exclusion For Estates Or Trusts - Vt Department Of Taxes - 2009

SCHEDULE FI-162

Capital Gains Exclusion for Estates or Trusts

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

from VT taxable income. The exclusion calculation changes for tax year 2009:

40% Exclusion Method - For capital gains occurring from January 1 to June 30, 2009, exclude 40% of the capital

gain or 40% of Federal taxable income, whichever is less.

Flat Exclusion Method - For capital gains occurring from July 1 to December 31, 2009, exclude the capital gain

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

Capital gains from sale of farm or standing timber - For gains from these specific sale types exclude 40% of the

capital gain or 40% of Federal taxable 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

PART I and PART II

NOTE: If you have capital gains from the sale of farm or standing timber, do not enter these sales on Part I or Part II.

Enter the information directly on Part IV.

Part I and Part II are pro forma Federal schedules for VT purposes to separate the capital gains into those occurring

from January 1 to June 30, 2009 and July 1 to December 31, 2009. Line instructions direct you to the appropriate

Federal schedule and line numbers.

PART III

Use Part III to calculate the capital gain exclusion for gains other than for farm or standing timber sales. The amount

on Line 63 is the 2009 capital gain exclusion.

PART IV

Use Part IV to calculate the capital gain exclusion on farm or standing timber sales only. If you have capital gains

from sales other than farm or standing timber, complete Part III and enter the amount on Line 68.

For additional information, contact:

VT Department of Taxes

Ph: 1-866-828-2865 (toll-free in VT)

133 State Street

Ph: 1-802-828-6820 (local and out-of-state)

Montpelier, VT 05633-1401

Fax: 1-802-828-2720

E-mail: brenda.carpenter@state.vt.us

Instructions For Schedule Fi-162 Capital Gains Exclusion For Estates Or Trusts - Vt Department Of Taxes - 2009