West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21 - Personal Income Tax › Section 110-21-38 - West Virginia Taxable Income Of Nonresident Estate Or Trust

Current through Register Vol. XLI, No. 28, July 12, 2024
38.1. General. -
				Certain income of a nonresident estate or trust (like certain income of a
				nonresident individual) is subject to taxation under the West Virginia Personal
				Income Tax Act. Nonresident estates and trust are defined in Section 7 of these
				regulations. The rates referred to in Section 4 of these regulations are
				applied against the taxable income of the estate or trust. The taxable income
				of a nonresident estate or trust does not include the amount distributable or
				properly paid or credited to the beneficiaries because beneficiaries are taxed
				on their distributive shares of the estate or trust and the estate or trust is
				taxed on the remaining balance of the income not distributed.
38.1.1. The West Virginia taxable income of a
				nonresident estate or trust is its federal taxable income to the extent derived
				from or connected with West Virginia sources subject to the applicable West
				Virginia exemption. Thus, subject to the applicable West Virginia exemption,
				the West Virginia taxable income of a nonresident estate or trust includes its
				share of federal distributable income and, in addition thereto, any other items
				of income, gain, loss or deduction of the estate or trust recognized for
				federal income tax purposes but not included in federal distributable net
				income to the extent that such share and other items are derived from or
				connected with West Virginia sources.
38.1.2. Items In Distributable Net Income. -
				The share of a nonresident estate or trust in the items of income, gain, loss
				and deduction, derived from or connected with West Virginia sources, which
				enter into the federal definition of distributable net income is the amount, if
				any, by which such items exceed the aggregate of all the beneficiaries' shares
				therein. The share of the nonresident estate or trust is determined in
				accordance with W. Va. Code '11-21-39
				and Section 39 of these regulations.
38.1.3. Items Not In Distributable Net
				Income. - The amount of any West Virginia connected items of income, gain, loss
				and deduction recognized for federal income tax purposes but excluded from the
				federal definition of distributable net income, must be added to or subtracted
				from, as the case may be, the estate's or trust's share of items reflected in
				distributable net income. The determination of the source of such items is made
				in accordance with the applicable rules of Sections 32 of these regulations and
				the provisions of W. Va. Code '11-21-32.
38.1.4. Exemption. - Each estate or trust is
				allowed a West Virginia exemption of six hundred dollars ($600), regardless of
				the amount of the federal exemption. An estate or trust is not allowed any
				exemption for dependents. The West Virginia exemption of six hundred dollars
				($600) is allowed an estate or trust even though the particular return filed
				may be for a taxable period of less than twelve (12) calendar months where the
				election is allowable federally.