23 Va. Admin. Code § 10-110-110 - Transitional modifications to Virginia taxable income
A. Employee annuity plans. Any amount
contributed by an individual to an employee annuity plan prior to January 1,
1972, which at the time of contribution was subject to Virginia income tax, may
be subtracted from FAGI in computing Virginia taxable income during the taxable
year in which the benefit is received by the individual or his beneficiary. The
subtraction shall be equal to the cost basis of the contributions prior to
January 1, 1972, and shall be allowed only to the extent that the benefits are
included in FAGI in the year of recovery, and to the extent that the benefits
have previously been taxed in Virginia.
B. Nondepreciable property. If any individual
sells or exchanges nondepreciable property in a taxable year beginning on or
after January 1, 1972, which was received by such individual prior to January
1, 1972, and the basis of such property is greater for state purposes than for
federal purposes, the excess may be subtracted from FAGI to the extent included
therein in determining Virginia taxable income. If the state basis is less than
the federal basis, no adjustment is required. This situation typically arises
in the case of inherited nondepreciable property.
Notes
Statutory Authority
§§ 58.1- 203 and 58.1-315 of the Code of Virginia.
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