Tax Type
Corporation Income Tax
Description
Capital gain; Request for alternative method of allocation and apportionment
Topic
Allocation and Apportionment
Date Issued
12-11-1984
December 11, 1984
Re: §58-151.051 Request for Alternative Method-
- Allocation and Apportionment; Capital Gain
Dear *********
The taxpayer is a corporation with its commercial domicile in Pennsylvania. In its 1983 Virginia return taxpayer followed the statutory method of allocation and apportionment and paid the resulting tax.
A substantial portion of taxpayer's income consisted of capital gain from the sale of real property located in Pennsylvania. This capital gain was included in apportionable income in the Virginia return. Pennsylvania requires this amount to be allocated to, and taxed by, Pennsylvania.
The taxpayer objects to the inclusion of the capital gain in apportionable income in the Virginia return and requests permission to allocate this income.
DETERMINATION
This issue has been given extensive consideration on a number of occasions. Attached is a copy of a ruling letter which explains the Department's policy on requests for an alternative method of allocation and apportionment.
After reviewing the facts stated, I conclude that the taxpayer has not shown the extraordinary circumstances that would justify the use of an alternative method of allocation and apportionment.
Accordingly, permission to include capital gains in allocable income is denied.
Sincerely,
W. H. Forst
State Tax Commissioner-
Rulings of the Tax Commissioner