West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21 - Personal Income Tax › Section 110-21-39 - Share Of Nonresident Estate, Trust Or Beneficiary In Income From West Virginia Sources

Current through Register Vol. XLI, No. 28, July 12, 2024
39.1.
				General. - The share of a nonresident estate or trust and the share of a
				nonresident beneficiary of any estate or trust, in estate or trust income,
				gain, loss and deduction from West Virginia sources shall be determined in
				accordance with W. Va. Code '11-21-39
				and this regulation.
39.1.1. Items Of
				Distributable Net Income From West Virginia Sources. - There shall be
				determined the items of income, gain, loss and deduction derived from or
				connected with West Virginia sources which enter into the definition of federal
				distributable net income of the estate or trust for the taxable year (including
				such items from another estate or trust of which the first (1st) estate or
				trust is a beneficiary). Items of federal distributable net income from West
				Virginia sources represent items of income, gain, loss and deduction which are
				either attributable to the ownership by the estate or trust of any interest in
				real or tangible personal property in West Virginia or attributable to a
				business, trade, profession or occupation carried on in this State by the
				estate or trust. Such determination of items from West Virginia sources shall
				be made in accordance with W. Va. Code '11-21-32
				and the rules prescribed in Section 32 of these regulations.
39.1.2. Modifications. - The applicable
				modifications, described in Subsections 12.2 and 12.3 of these regulations,
				pertaining to items from West Virginia sources shall be first combined into a
				single net number. This number, which may be a positive or negative number,
				constitutes the net modification. After this number is computed, it is then
				allocated in the manner prescribed in Subsection 39.1.3 of this regulation for
				allocating distributable net income from West Virginia sources. When, however,
				a West Virginia item which would be treated as a modification is already
				included in federal distributable net income, no modification which in effect
				would duplicate the item shall be made.
39.1.3. Allocation Among Estate Or Trust And
				Beneficiaries. - The distributable net income of an estate or trust from West
				Virginia sources shall be allocated between the nonresident estate or trust and
				its nonresident beneficiaries in proportion to their respective shares of
				federal distributable net income, including, solely for the purpose of this
				allocation, any share of resident beneficiaries. The share of the estate or
				trust in federal distributable net income is the amount, if any, by which the
				federal distributable net income exceeds the aggregate of the shares therein of
				all its beneficiaries.
39.1.3.1. Character Of
				Items. - Each of the estate or trust items of income, gain, loss or deduction
				shall have the same character for West Virginia income tax purposes as for
				federal income tax purposes. Where such an item is not characterized for
				federal income tax purposes, the item shall have the same character as if
				realized directly from the source from which realized by the estate or trust,
				or incurred in the same manner as incurred by the estate or trust. The same is
				true if an estate or trust item is not required to be taken into account for
				federal income tax purposes.