IN-153: Vermont Capital Gains Exclusion Calculation (2025)
Vermont · Vermont Department of Taxes · Used for tax years 2025
Schedule IN-153 calculates your 2025 Vermont capital gains exclusion using flat and, for eligible gains, percentage exclusion calculations. The final exclusion amount is entered on Schedule IN-112, Part I, Line 8, and IN-153 is included with Form IN-111.
Who files this form
Use 2025 Schedule IN-153 to calculate your Vermont capital gains exclusion. The form directs you to include it with Form IN-111.
Complete Part II, the percentage exclusion calculation, only if you have eligible gains. Otherwise, continue to Part III.
What you'll need
Have these forms and amounts available:
- Federal Form 1040, Schedule D, including Lines 15, 16, 18, and 19.
- Federal Form 4952, if you filed it, including Lines 4g, 4e, and 4b.
- Your federal taxable income for the limit calculated in Part III.
- If completing Part II, adjusted net capital gain amounts grouped by how long you held the assets and by the asset categories listed on Lines 13a through 13c.
You will also need Form IN-111, which must include this schedule, and Schedule IN-112, where you enter the final exclusion.
How to file
- Print in blue or black ink.
- Enter the taxpayer's name and Social Security number in the spaces provided.
- Complete Part I to calculate the flat exclusion. If you filed federal Form 4952, complete Lines 5 through 7.
- Complete Part II only if you have eligible gains. Otherwise, continue to Part III.
- Complete Part III and enter the exclusion from Line 21 on Schedule IN-112, Part I, Line 8.
- Include Schedule IN-153 with Form IN-111.
Common mistakes
- Do not enter a negative amount on Lines 8, 12, or 15. Each line says the entry cannot be less than zero.
- Do not use Part II unless you have eligible gains. The form points to Technical Bulletin 60 for more information.
- Check the special instructions for Line 16. If no investment interest expense for ineligible assets was reported on federal Form 4952, enter Part I, Line 7. Otherwise, you may need to recompute Form 4952 to reflect only investment interest income for assets eligible for the exclusion.
- Remember to include this schedule with Form IN-111 and transfer Line 21 to Schedule IN-112, Part I, Line 8.
Questions people ask
How much is the flat exclusion?
Part I, Line 9 is the smaller of the calculated amount on Line 8 or $5,000. The final exclusion is also subject to the calculation in Part III.
How is the percentage exclusion calculated?
Part II, Line 18 is 40% of Line 17 or $350,000, whichever is less.
Which gains are subtracted when calculating eligible gains in Part II?
Part II subtracts adjusted net capital gains from assets held for three years or less. For assets held for more than three years, it also subtracts gains from real estate used as a primary or nonprimary home, depreciable personal property except farm property or standing timber, and publicly traded or exchange-traded stocks or bonds or any other financial instruments.
How is the final exclusion determined?
Line 19 takes the greater of the flat exclusion on Line 9 or the percentage exclusion on Line 18. Line 21 then takes the smaller of Line 19 or 40% of your federal taxable income. Enter that final amount on Schedule IN-112, Part I, Line 8.