West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-21 - Personal Income Tax
Section 110-21-18 - West Virginia Taxable Income Of Resident Estate Or Trust
Universal Citation: 110 WV Code of State Rules 110-21-18
Current through Register Vol. XLI, No. 38, September 20, 2024
18.1. General. - The income of a resident estate or trust is subject to taxation under the provisions of the West Virginia Personal Income Tax Act. The rates referred to in Subsection 4.1 of these regulations are to be applied against the taxable income of the estate or trust in determining the personal income tax liability of such estate or trust.
18.1.1. The West
Virginia taxable income of a resident estate or trust means its federal taxable
income as defined pursuant to the laws of the United States for the taxable
year with certain modifications. Thus, the federal taxable income of the estate
or trust is the starting point for computing the West Virginia taxable income.
This method of computing the West Virginia taxable income of an estate or trust
applies, for example, in:
(1) the computation
of the West Virginia taxable income of an estate for the first taxable period
thereof starting with the day following the decedent's death, and
(2) the computation of the West Virginia
taxable income for the final taxable period of an estate or trust ending at the
date of termination thereof.
18.1.1.1. The computation of the taxable
income of a resident decedent on the final return ending with the date of his
death is computed in the same manner as the taxable income of a resident
individual.
18.2. Modification of Federal Taxable Income. - In order to determine the West Virginia taxable income of a resident estate or trust, two (2) modifications must be made. These modifications are the exemption modification and the fiduciary adjustment.
18.2.1. Exemption Modification. - Each estate
or trust is allowed a West Virginia exemption of six hundred dollars ($600). An
estate or trust is not allowed any exemption for dependents.
18.2.1.1. In computing the West Virginia
taxable income of a resident estate or trust six hundred dollars ($600) shall
be subtracted from the estate's or trust's federal taxable income and there
shall be added to the estate's or trust's federal taxable income the amount of
its federal deduction for a personal exemption.
18.2.2. Fiduciary Adjustment. - The
applicable modifications as described in Subsections 12.2 and 12.3 of these
regulations relating to items of income, gain or deduction may be applicable
against the federal taxable income of the estate or trust when computing its
West Virginia taxable income. These modifications shall be first combined in a
single net amount. This amount, which may be a positive or negative,
constitutes the fiduciary adjustment. After this amount is computed, it is then
allocated in the manner described under W. Va. Code '11-21-19
and Section 19 of these regulations. The amount, which is allocable to the
fiduciary, is added to or subtracted from the federal taxable income of the
estate or trust (depending on whether it is a positive or negative number) to
arrive at the West Virginia taxable income of such estate or trust.
Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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