Form 1099-S Non-Resident Land Sale Vermont

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  • #14403
    sylmar
    Participant

    Property was bought in the 70s and sold 2020. Form 1099S was issued for gross proceeds. 2.5% Non resident withholding tax was deducted as additional settlement charges. Do we still need to file anything with the State of Vermont?

    #14425
    ruth
    Participant

    You need to report the sale on a Vermont income tax return. You get credit on the return for the amount withheld.

    #14430
    sylmar
    Participant

    Thank you Ruth. I did get some more information in the meantime. It looks to me that I have to fill out VT Form IN-111 and Schedule IN-113. I may have more questions later on. Believe I do not have to pay 6% on sale price but rather on sale price minus acquisition and closing costs???

    #14435
    ruth
    Participant

    You’re correct. You pay tax only on the gain, not on the sales price. You enter the gain from the federal return in the Vermont column of Schedule IN-113.

    #15331
    sylmar
    Participant

    I ordered the Turbotax Vermont Return. I thought I had to pay 6% but it figured it out at a lot less. Comes to roughly 3% that I owe. Could this be true? I’ll recheck again.

    #15369
    sylmar
    Participant

    You can ignore my earlier message. Not sure where I got 6% from. VT withheld 2.5% from the sale price, Form RW-171. After acquisition and closing costs deducted, I am getting money back.

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