Tax Type
Individual Income Tax
Description
Fishing vessels
Topic
Computation of Tax
Taxpayers' Remedies
Date Issued
12-21-1982
December 21, 1982
Re: Request for Ruling/Individual Income Tax
Dear ***************
This will reply to your letter of December 8 and 10, 1982, in which you request a ruling on the correct application of state tax to income deposited into a ************** account.
FACTS
The ************** program (hereinafter ****** ) enables a fisherman to defer federal income tax on the portion of his operating income from fishing vessels which he deposits in a**** account for the construction, reconstruction or acquisition of fishing vessels. Qualified deposits to such a fund constitute a deduction in computing the federal taxable income of a corporation or the adjusted gross income of an individual.
RULING
§ 58-151.013(G) of the Code of Virginia specifies that the taxable income of a resident individual means his federal adjusted gross income with certain modifications. Further, Virginia Code § 58-151.032 specifies that the taxable income of a corporation means its federal taxable income. To the extent that deposits to a **** represents a deduction under federal law in computing the federal taxable income of a corporation or the adjusted gross income or an individual, they will be excluded from Virginia taxable income.
If we may be of further assistance, please feel free to call on us.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner