Commissioner's Certificate

The list below is for common real estate transactions.  The Internal Revenue Code provides for other scenarios that differ and will require different documentation than listed below, please contact the Department for more information about other scenarios.

All Commissioner Certificate requests must include:

  1. That sellers be in good standing with the Department
  2. Property transfer tax return from the purchase of the property
  3. Property transfer tax return proposed for the sale of the property

Please note: Beginning Dec. 7: Certificate requests must be submitted through myVTax. We will no longer requests by fax, mail, or delivery.

The anticipated turnaround time to issue a certificate is 10 business days.

What Type of Certificate Are You Looking for? 


REAL ESTATE WITHHOLDING CERTIFICATE
Information We Need to Process Your Request:

Seller used the property as their primary residence

  • Signed document from the sellers with the following statement:
    • Selling their primary residence
    •  Owned and occupied as a primary residence 2 of the last 5 years
    • They will be taking their once every 2-year Federal exclusion
    • They have not taken the Federal exclusion in the last 2 years
    • The property has not been used for rental or business purposes (if this claim cannot be made then a depreciation worksheet is required)

Seller is incurring a loss on the transaction

  • Breakdown of the purchase and sale expenses: see table below
  • Breakdown of capital improvements: see table below
  • Breakdown should be a detailed list of the improvement with the associated cost – this does not include any repairs, maintenance or personal property.  Receipts are only requested if there are questions about the scope and cost of an item on the list.
  • Statement signed by the seller stating that the property has not been used for rental or business purposes (if this claim cannot be made then a depreciation worksheet is required)

 Transaction is part of a §1031 exchange agreement

  • Copy of the 1031 exchange agreement
  • Copy of the purchase & sale for the replacement property if identified

Vermont residency – individuals or entities

  • Signed statement from each Vermont resident stating:
    • They are a Vermont resident
    • They are receiving ___ % of the proceeds

Entity is tax exempt, such as 501(c)(3)

  • Require a copy of the Internal Revenue Service letter stating their approved status

Reduced withholding request – withholding on the gain would be lower than the 2.5% of the sale price

  • Breakdown of the purchase and sale expenses: see table below
  • Breakdown of capital improvements: see table below
  • Breakdown should be a detailed list of the improvement with the associated cost – this does not include any repairs, maintenance or personal property.  Receipts are only requested if there are questions about the scope and cost of an item on the list.
  • Statement signed by the seller stating that; the property has not been used for rental; or business purposes (if this claim cannot be made then a depreciation worksheet is required)

Amount of gain realized on the transaction is below the exclusion amount

  • Breakdown of the purchase and sale expenses: see table below
  • Breakdown of capital improvements: see table below
  • Breakdown should be a detailed list of the improvement with the associated cost – this does not include any repairs, maintenance or personal property.  Receipts are only requested if there are questions about the scope and cost of an item on the list. 
  • Statement signed by the seller stating that the property has not been used for rental or business purposes (if this claim cannot be made then a depreciation worksheet is required)

Any provision of the IRC where gain is not recognized


LAND GAINS CERTIFICATE
Information We Need to Process Your Request:

  • Property Transfer Tax Return from the purchase of the property
  • Supporting documentation of information on Form LGT-178 which may include:
    • Inventory from estate
    • Lister’s card
    • Appraisal 
    • List of capital improvements: see table below

The breakdown should be a detailed list of the improvement with the associated costs, this does not include any repairs, maintenance or personal property.  Receipts are only requested if there are questions about the scope and cost of an item on the list.


Here are some examples:

Breakdown: Purchase Expenses
Legal Fees $750.00
Transfer Tax $1,250.00
Total $2,000.00
Capital improvements: Renovated Kitchen
Demolition $2,000.00
Cabinets $7,000.00
Electric $1,000.00
Plumbing $1,500.00
Drywall $750.00
Tiles: backsplash & flooring $1,500.00
Painting $1,000.00
Total $14,750.00
Capital improvements: Renovated living room
Demolition $500.00
Electric $750.00
Drywall $1,000.00
Painting $750.00
Flooring $1,000.00
Total $4,000.00

You need to list each improvement that has been completed.

Include:

  • Replacing the roof would be allowed
  • The painting in the above example is allowed as it is new construction

Do not include:

  • Maintenance, such as painting the inside or outside of the property would not be allowed to be included in the basis as this is general maintenance of the property
  • Repairs, such as repair the roof would not be included in the basis as this is general repairs to the property
  • Appliances and furnishing are not included in the basis as these are personal property

Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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