A. If the federal taxable income of husband or wife is determined on aseparate federal return, their Virginia taxable incomes shall be separatelydetermined.
B. If the federal taxable income of husband and wife is determined on a jointfederal return, or if neither files a federal return:
1. Their tax shall be determined on their joint Virginia taxable income; or
2. Separate taxes may be determined on their separate Virginia taxableincomes if they so elect.
C. Where husband and wife have not separately reported and claimed items ofincome, exemptions and deductions for federal income tax purposes, and havenot elected to file a joint Virginia income tax return, such items allowablefor Virginia income tax purposes shall be allocated and adjusted as follows:
1. Income shall be allocated to the spouse who earned the income or withrespect to whose property the income is attributable.
2. Allowable deductions with respect to trade, business, production ofincome, or employment shall be allocated to the spouse to whom attributable.
3. Nonbusiness deductions, where properly taken for federal income taxpurposes, shall be allowable for Virginia income tax purposes, but shall beallocable between husband and wife as they may mutually agree. For thispurpose, "nonbusiness deductions" consist of allowable deductions notdescribed in subdivision 2 of this subsection.
4. Where the standard deduction or low income allowance is properly takenpursuant to subdivision D 1 a of § 58.1-322 such deduction or allowance shallbe allocable between husband and wife as they may mutually agree.
5. Personal exemptions properly allowable for federal income tax purposesshall be allocated for Virginia income tax purposes as husband and wife maymutually agree; however, exemptions for taxpayer and spouse together withexemptions for old age and blindness must be allocated respectively to thespouse to whom they relate.
D. Where allocations are permitted to be made under subsection C pursuant toagreement between husband and wife, and husband and wife have failed to agreeas to those allocations, such allocations shall be made between husband andwife in a manner corresponding to the treatment for federal income taxpurposes of the items involved, under regulations prescribed by theDepartment of Taxation.
(Code 1950, §§ 58-151.012, 58-151.013; 1971, Ex. Sess., c. 171; 1972, c. 827;1973, cc. 198, 345, 458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694, 781;1977, cc. 297, 612; 1978, cc. 67, 158; 1979, cc. 226, 596; 1981, cc. 402,414; 1982, c. 633; 1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675,729.)
A. If the federal taxable income of husband or wife is determined on aseparate federal return, their Virginia taxable incomes shall be separatelydetermined.
B. If the federal taxable income of husband and wife is determined on a jointfederal return, or if neither files a federal return:
1. Their tax shall be determined on their joint Virginia taxable income; or
2. Separate taxes may be determined on their separate Virginia taxableincomes if they so elect.
C. Where husband and wife have not separately reported and claimed items ofincome, exemptions and deductions for federal income tax purposes, and havenot elected to file a joint Virginia income tax return, such items allowablefor Virginia income tax purposes shall be allocated and adjusted as follows:
1. Income shall be allocated to the spouse who earned the income or withrespect to whose property the income is attributable.
2. Allowable deductions with respect to trade, business, production ofincome, or employment shall be allocated to the spouse to whom attributable.
3. Nonbusiness deductions, where properly taken for federal income taxpurposes, shall be allowable for Virginia income tax purposes, but shall beallocable between husband and wife as they may mutually agree. For thispurpose, "nonbusiness deductions" consist of allowable deductions notdescribed in subdivision 2 of this subsection.
4. Where the standard deduction or low income allowance is properly takenpursuant to subdivision D 1 a of § 58.1-322 such deduction or allowance shallbe allocable between husband and wife as they may mutually agree.
5. Personal exemptions properly allowable for federal income tax purposesshall be allocated for Virginia income tax purposes as husband and wife maymutually agree; however, exemptions for taxpayer and spouse together withexemptions for old age and blindness must be allocated respectively to thespouse to whom they relate.
D. Where allocations are permitted to be made under subsection C pursuant toagreement between husband and wife, and husband and wife have failed to agreeas to those allocations, such allocations shall be made between husband andwife in a manner corresponding to the treatment for federal income taxpurposes of the items involved, under regulations prescribed by theDepartment of Taxation.
(Code 1950, §§ 58-151.012, 58-151.013; 1971, Ex. Sess., c. 171; 1972, c. 827;1973, cc. 198, 345, 458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694, 781;1977, cc. 297, 612; 1978, cc. 67, 158; 1979, cc. 226, 596; 1981, cc. 402,414; 1982, c. 633; 1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675,729.)
A. If the federal taxable income of husband or wife is determined on aseparate federal return, their Virginia taxable incomes shall be separatelydetermined.
B. If the federal taxable income of husband and wife is determined on a jointfederal return, or if neither files a federal return:
1. Their tax shall be determined on their joint Virginia taxable income; or
2. Separate taxes may be determined on their separate Virginia taxableincomes if they so elect.
C. Where husband and wife have not separately reported and claimed items ofincome, exemptions and deductions for federal income tax purposes, and havenot elected to file a joint Virginia income tax return, such items allowablefor Virginia income tax purposes shall be allocated and adjusted as follows:
1. Income shall be allocated to the spouse who earned the income or withrespect to whose property the income is attributable.
2. Allowable deductions with respect to trade, business, production ofincome, or employment shall be allocated to the spouse to whom attributable.
3. Nonbusiness deductions, where properly taken for federal income taxpurposes, shall be allowable for Virginia income tax purposes, but shall beallocable between husband and wife as they may mutually agree. For thispurpose, "nonbusiness deductions" consist of allowable deductions notdescribed in subdivision 2 of this subsection.
4. Where the standard deduction or low income allowance is properly takenpursuant to subdivision D 1 a of § 58.1-322 such deduction or allowance shallbe allocable between husband and wife as they may mutually agree.
5. Personal exemptions properly allowable for federal income tax purposesshall be allocated for Virginia income tax purposes as husband and wife maymutually agree; however, exemptions for taxpayer and spouse together withexemptions for old age and blindness must be allocated respectively to thespouse to whom they relate.
D. Where allocations are permitted to be made under subsection C pursuant toagreement between husband and wife, and husband and wife have failed to agreeas to those allocations, such allocations shall be made between husband andwife in a manner corresponding to the treatment for federal income taxpurposes of the items involved, under regulations prescribed by theDepartment of Taxation.
(Code 1950, §§ 58-151.012, 58-151.013; 1971, Ex. Sess., c. 171; 1972, c. 827;1973, cc. 198, 345, 458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694, 781;1977, cc. 297, 612; 1978, cc. 67, 158; 1979, cc. 226, 596; 1981, cc. 402,414; 1982, c. 633; 1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675,729.)
