§ 58.1-315. Transitional modifications to Virginia taxable income.
The modifications of Virginia taxable income to be made in accordance withsubsection F of § 58.1-322 and subsection D of § 58.1-402, so long asapplicable, are as follows:
1. There shall be subtracted from Virginia taxable income the amountnecessary to prevent the taxation under this chapter of any annuity or of anyother amount of income or gain which was properly included in income or gainand was taxable under Articles 1, 2, 3, 4, 5, 6, or 7 (§§ 58-77 through58-151) of Chapter 4 of Title 58 to the taxpayer prior to the repeal thereof,or to a decedent by reason of whose death the taxpayer acquires the right toreceive the income or gain, or to a trust or estate from which the taxpayerreceived the income or gain.
2. The carry-back of net operating losses or net capital losses to reducetaxable income of taxable years beginning prior to January 1, 1972, shall notbe permitted. Where a taxpayer would have been allowed to deduct an amount asa net operating loss carry-over or net capital loss carry-over in determiningtaxable income for a taxable year beginning after December 31, 1971, but forthe fact that such loss, or a portion of such loss, had been carried back indetermining taxable income for a taxable year beginning prior to January 1,1972, there shall be added to Virginia taxable income any amount which wasactually deducted in determining taxable income as a net operating losscarry-over or net capital loss carry-over and there shall be subtracted fromVirginia taxable income the amount which could have been deducted as a netoperating loss carry-over or net capital loss carry-over in arriving attaxable income but for the fact that such loss, or a portion of such loss,had been carried back for federal purposes.
3. There shall be added to Virginia taxable income the amount necessary toprevent the deduction under this chapter of any item which was properlydeductible by the taxpayer in determining a tax under §§ 58-77 through 58-151prior to the repeal thereof.
4. There shall be subtracted from Virginia taxable income that portion of anyaccumulation distribution which is allocable, under the laws of the UnitedStates relating to federal income taxes, to undistributed net income of atrust for any taxable year beginning on or before December 31, 1971. Therules prescribed by such laws of the United States with reference to any suchaccumulation distribution shall be applied, mutatis mutandis, to allow forthis limitation; and, without limiting the generality of the foregoing, thecredit provided by § 58.1-370 in the case of accumulation distributions shallin no instance encompass any part of any tax paid for a taxable yearbeginning on or before December 31, 1971.
5. As to gain or loss attributable to the sale or exchange of nondepreciableproperty, Virginia taxable income shall be adjusted to effect a reduction insuch gain or increase in such loss by the amount by which the adjusted basisof such property, determined for Virginia income tax purposes at the close ofthe taxable period immediately preceding the first taxable period to whichArticles 7.1 to 7.6 (§ 58-151.01 et seq.) of Title 58 applied prior to repealthereof exceeds the adjusted basis of such property for federal income taxpurposes determined at the close of the same period.
6. There shall be subtracted from the Virginia taxable income of ashareholder of an electing small business corporation any amount included inhis taxable income as his share of the undistributed taxable income of suchcorporation for any year of the corporation beginning before January 1, 1972.
7. There shall be subtracted from federal taxable income amounts which wouldhave been deductible by the corporation in computing federal taxable incomebut for the election of such corporation of the additional investment taxcredit under § 46(a)(2)(B) of the Internal Revenue Code in effect on January1, 1978.
(Code 1950, § 58-151.0111; 1971, Ex. Sess., c. 171; 1972, c. 827; 1973, c.323; 1974, c. 248; 1981, c. 402; 1984, c. 675.)
§ 58.1-315. Transitional modifications to Virginia taxable income.
The modifications of Virginia taxable income to be made in accordance withsubsection F of § 58.1-322 and subsection D of § 58.1-402, so long asapplicable, are as follows:
1. There shall be subtracted from Virginia taxable income the amountnecessary to prevent the taxation under this chapter of any annuity or of anyother amount of income or gain which was properly included in income or gainand was taxable under Articles 1, 2, 3, 4, 5, 6, or 7 (§§ 58-77 through58-151) of Chapter 4 of Title 58 to the taxpayer prior to the repeal thereof,or to a decedent by reason of whose death the taxpayer acquires the right toreceive the income or gain, or to a trust or estate from which the taxpayerreceived the income or gain.
2. The carry-back of net operating losses or net capital losses to reducetaxable income of taxable years beginning prior to January 1, 1972, shall notbe permitted. Where a taxpayer would have been allowed to deduct an amount asa net operating loss carry-over or net capital loss carry-over in determiningtaxable income for a taxable year beginning after December 31, 1971, but forthe fact that such loss, or a portion of such loss, had been carried back indetermining taxable income for a taxable year beginning prior to January 1,1972, there shall be added to Virginia taxable income any amount which wasactually deducted in determining taxable income as a net operating losscarry-over or net capital loss carry-over and there shall be subtracted fromVirginia taxable income the amount which could have been deducted as a netoperating loss carry-over or net capital loss carry-over in arriving attaxable income but for the fact that such loss, or a portion of such loss,had been carried back for federal purposes.
3. There shall be added to Virginia taxable income the amount necessary toprevent the deduction under this chapter of any item which was properlydeductible by the taxpayer in determining a tax under §§ 58-77 through 58-151prior to the repeal thereof.
4. There shall be subtracted from Virginia taxable income that portion of anyaccumulation distribution which is allocable, under the laws of the UnitedStates relating to federal income taxes, to undistributed net income of atrust for any taxable year beginning on or before December 31, 1971. Therules prescribed by such laws of the United States with reference to any suchaccumulation distribution shall be applied, mutatis mutandis, to allow forthis limitation; and, without limiting the generality of the foregoing, thecredit provided by § 58.1-370 in the case of accumulation distributions shallin no instance encompass any part of any tax paid for a taxable yearbeginning on or before December 31, 1971.
5. As to gain or loss attributable to the sale or exchange of nondepreciableproperty, Virginia taxable income shall be adjusted to effect a reduction insuch gain or increase in such loss by the amount by which the adjusted basisof such property, determined for Virginia income tax purposes at the close ofthe taxable period immediately preceding the first taxable period to whichArticles 7.1 to 7.6 (§ 58-151.01 et seq.) of Title 58 applied prior to repealthereof exceeds the adjusted basis of such property for federal income taxpurposes determined at the close of the same period.
6. There shall be subtracted from the Virginia taxable income of ashareholder of an electing small business corporation any amount included inhis taxable income as his share of the undistributed taxable income of suchcorporation for any year of the corporation beginning before January 1, 1972.
7. There shall be subtracted from federal taxable income amounts which wouldhave been deductible by the corporation in computing federal taxable incomebut for the election of such corporation of the additional investment taxcredit under § 46(a)(2)(B) of the Internal Revenue Code in effect on January1, 1978.
(Code 1950, § 58-151.0111; 1971, Ex. Sess., c. 171; 1972, c. 827; 1973, c.323; 1974, c. 248; 1981, c. 402; 1984, c. 675.)
§ 58.1-315. Transitional modifications to Virginia taxable income.
The modifications of Virginia taxable income to be made in accordance withsubsection F of § 58.1-322 and subsection D of § 58.1-402, so long asapplicable, are as follows:
1. There shall be subtracted from Virginia taxable income the amountnecessary to prevent the taxation under this chapter of any annuity or of anyother amount of income or gain which was properly included in income or gainand was taxable under Articles 1, 2, 3, 4, 5, 6, or 7 (§§ 58-77 through58-151) of Chapter 4 of Title 58 to the taxpayer prior to the repeal thereof,or to a decedent by reason of whose death the taxpayer acquires the right toreceive the income or gain, or to a trust or estate from which the taxpayerreceived the income or gain.
2. The carry-back of net operating losses or net capital losses to reducetaxable income of taxable years beginning prior to January 1, 1972, shall notbe permitted. Where a taxpayer would have been allowed to deduct an amount asa net operating loss carry-over or net capital loss carry-over in determiningtaxable income for a taxable year beginning after December 31, 1971, but forthe fact that such loss, or a portion of such loss, had been carried back indetermining taxable income for a taxable year beginning prior to January 1,1972, there shall be added to Virginia taxable income any amount which wasactually deducted in determining taxable income as a net operating losscarry-over or net capital loss carry-over and there shall be subtracted fromVirginia taxable income the amount which could have been deducted as a netoperating loss carry-over or net capital loss carry-over in arriving attaxable income but for the fact that such loss, or a portion of such loss,had been carried back for federal purposes.
3. There shall be added to Virginia taxable income the amount necessary toprevent the deduction under this chapter of any item which was properlydeductible by the taxpayer in determining a tax under §§ 58-77 through 58-151prior to the repeal thereof.
4. There shall be subtracted from Virginia taxable income that portion of anyaccumulation distribution which is allocable, under the laws of the UnitedStates relating to federal income taxes, to undistributed net income of atrust for any taxable year beginning on or before December 31, 1971. Therules prescribed by such laws of the United States with reference to any suchaccumulation distribution shall be applied, mutatis mutandis, to allow forthis limitation; and, without limiting the generality of the foregoing, thecredit provided by § 58.1-370 in the case of accumulation distributions shallin no instance encompass any part of any tax paid for a taxable yearbeginning on or before December 31, 1971.
5. As to gain or loss attributable to the sale or exchange of nondepreciableproperty, Virginia taxable income shall be adjusted to effect a reduction insuch gain or increase in such loss by the amount by which the adjusted basisof such property, determined for Virginia income tax purposes at the close ofthe taxable period immediately preceding the first taxable period to whichArticles 7.1 to 7.6 (§ 58-151.01 et seq.) of Title 58 applied prior to repealthereof exceeds the adjusted basis of such property for federal income taxpurposes determined at the close of the same period.
6. There shall be subtracted from the Virginia taxable income of ashareholder of an electing small business corporation any amount included inhis taxable income as his share of the undistributed taxable income of suchcorporation for any year of the corporation beginning before January 1, 1972.
7. There shall be subtracted from federal taxable income amounts which wouldhave been deductible by the corporation in computing federal taxable incomebut for the election of such corporation of the additional investment taxcredit under § 46(a)(2)(B) of the Internal Revenue Code in effect on January1, 1978.
(Code 1950, § 58-151.0111; 1971, Ex. Sess., c. 171; 1972, c. 827; 1973, c.323; 1974, c. 248; 1981, c. 402; 1984, c. 675.)
