INSTRUCTIONS: VERMONT LAND GAINS TAX RETURN (Form LG-2)

Any Vermont resident who sells land which they have owned for less than six years must file a land gains tax return within 30 days of the transaction even if they do not owe tax. This document can be found on the website of the Vermont Department of Taxes.

Vermont Land Gains Tax Return LG-2 Step 1: In section 1, give the name of all people selling the property, as well as their addresses and Social Security or federal identification numbers. The same information should be given for all buyers in section 2. In section 3, indicate with a check mark the nature of your interest in the property. In section 4a, give the full address. In section 4b, give the total number of acres or square feet. In section 5, indicate with a check mark the nature of the property.

Vermont Land Gains Tax Return LG-2 Step 2: In section 6, indicate all exemptions you or the purchaser are intending to claim.

Vermont Land Gains Tax Return LG-2 Step 3: In section 7, indicate with a check mark whether this was a purchase, inheritance, gift or other type of transaction. In section 8, give the dates on which you acquired and sold the property, as well as the total duration you held the property.

Vermont Land Gains Tax Return LG-2 Step 4: In section 9, give the total selling price for the land and any buildings only. Do not include personal property. In section 10, detail all selling expenses. Subtract this from section 9 to determine your adjusted selling price in section 11.

Vermont Land Gains Tax Return LG-2 Step 5: Sections 12 and 13 concern the cost of land and structures, respectively. Follow the instructions in sections 14 through 18 to determine the tax due in section 19. Only those who have made an installment sale must complete section 20. Sections 21 through 23 are the final computations to determine the tax due.

Vermont Land Gains Tax Return LG-2 Step 6: Those who reported a loss in section 15 do not need to complete schedule A, which is for purchases involving buildings, or section B, which involves cases when an exemption is claimed and some portion of the purchase is not exempt. Section C concerns timber and timber rights purchases. All sellers must sign and date the form.