2017 Schedule In-153 Capital Gains Exclusion Instructions printable pdf download

2017 SCHEDULE IN-153

Capital Gains Exclusion

Who is Eligible to File?

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. Qualified dividends are not eligible for capital gains treatment for

Vermont tax purposes. 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 2017 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 2017 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 federal Form 1040, Schedule D, enter the amount from Form 1040, Line 13, on

Line 1.

Part II Percentage Exclusion

Taxpayers may choose 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 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 instruments which are publicly traded or traded on an exchange

For more information on the Capital Gains Exclusion, please see Vermont Department of Taxes regulation

Reg. § 1.5811.(21)(B)(ii) found on our website at

Part III Capital Gain Exclusion Amount

Part III 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.

Contacting the Department

Mail:

Vermont Department of Taxes

133 State Street

Montpelier, VT 05633-1401

Phone:

(866) 828-2865 (toll-free in Vermont)

Phone:

(802) 828-2865 (local and out-of-state)

Schedule IN-153 Instructions

Fax:

(802) 828-2720

Page 1 of 1

E-mail:

tax.individualincome@vermont.gov

Rev. 10/17

2017 Schedule In-153 Capital Gains Exclusion Instructions

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