Mike Moloney is a Senior Tax and Records Specialist in Yankee's White River Junction office. He is also an IRS Enrolled Agent. Yesterday Mike testified before the Vermont House Ways and Means Committee regarding the impact to dairy farmers of changes that the Vermont Legislature is considering to capital gains taxes.
The Federal capital gains tax is a reduced tax rate applied to 100% of the gain. The current Vermont state capital gains tax is the regular tax rate applied to 60% of the gain (i.e., 40% exemption). The proposed change would replace this by exempting the first $2,500 of capital gain income and taxing the remainder; in addition, the 40% exemption would continue to be available to taxpayers over age 65.
