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So, any gain on sale of land or building by the owner is taxable as capital gain. Sale consideration reduced by cost of acquisition (indexed cost of acquisition for land or building held for more than 24 months) is taxable as capital gain.
Long-term capital gain = Final Sale Price \u2013 (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where: Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.
There are exemptions for the property transfer tax on the first $110,000 in value of the property transferred when the buyer obtains a mortgage loan: made by the U.S. Department of Agriculture and Rural Development or. purchased by the Vermont Housing and Finance Agency.
General Information. When is a Property Transfer Tax Return Required? The Property Transfer Tax is a tax on the transfer by deed of title to real property in Vermont. A Property Transfer Tax Return must be filed with a Town Clerk whenever a deed transferring title to real property is delivered to them for recording.
Call the State of Vermont Tax Department at 866-828-2865/802-828-2865.
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Capital gains taxes are due when farm or ranch land, buildings, breeding livestock and timber are sold. The tax is owed on the amount that the property increased in value since it was purchased. The current top capital gains tax is 20 percent.
A buyer of Vermont land held for less than six years is required to withhold 10% of the consideration attributable to land. At the time of transfer, withholding must be submitted to the Vermont Department of Taxes.
There are exemptions for the property transfer tax on the first $110,000 in value of the property transferred when the buyer obtains a mortgage loan: made by the U.S. Department of Agriculture and Rural Development or. purchased by the Vermont Housing and Finance Agency.
Your employer should give you several copies, a copy for your records and copies to submit with your tax forms. Vermont law requires employers to submit a copy to the Vermont Department of Taxes by Jan. 31 as well, so that the Department can match up the two forms during processing.
How to Avoid Capital Gains Taxes on a Land Sale A financial advisor can help you optimize a tax strategy for your investment needs and goals. 1031 exchange. ... Deferred sale. ... Installment sale. ... Offset gains with capital losses. ... Donate appreciated land to a charity. ... Beneficiaries sell after death.

property transfer tax form