Tax Type
Estate Tax
Description
VIRGINIA ESTATE TAX REGULATIONS
Topic
Reports
Date Issued
01-01-1984
see date
These regulations for the Virginia Estate Tax are published by the authority granted the State Tax Commissioner under Virginia Code § 58-48.6 (§58.1-203 effective January 1, 1985) and are subject to amendment, revision and supplemental regulations as required or appropriate.
Amendments, revisions and updates to these regulations will be issued as replacement pages, each replacement page having on it the date of revision.
Each regulation section is numbered to reference the section of Title 58.1 of the Code of Virginia which it interprets. The first three digits, 630, identify these regulations, for purposes of the Virginia Register of Regulations, as regulations of the Department of Taxation. The digits following the first hyphen indicate the tax type, and the digits following the second hyphen indicate the section of Title 58.1 being interpreted. For example, the section number 630-7-900 identifies the agency (630), the estate tax (7), and the section of Title 58.1, Code of Virginia, which is interpreted (900).
W. H. Forst
State Tax Commissioner
Virginia Department of Taxation
P. O. Box 6-L
Richmond, Virginia 23282
EFFECTIVE DATE: January 1, 1985, with retroactive effect according to § 58-48.6 (recodified as §58.1-203).
EXPIRATION DATE: N/A
SUPERSEDES: All previous documents and any oral directives in conflict herewith.
REFERENCES: Code of Virginia §§ 58.1-900 through 58.1-908 are regulated herein.
AUTHORITY: § 58-48.6, Code of Virginia, and §58.1-203 on and after January 1, 1985.
SCOPE: Applicable to estates of decedents dying on and after January 1, 1980.
SUMMARY: These are initial regulations interpreting certain provisions of the Virginia estate tax, consisting of §§630-7-900 through 630-7-908.
ADOPTION DATE: September 19 , 1984.
Regulation Section Page
630-7-900 TITLE
Preface
In general
630-7-901 DEFINITIONS
630-7-902 OUT-OF-STATE CREDIT AGAINST RESIDENT'S TAX
630-7-903 NONRESIDENT'S TAX
630-7-904 ALIEN DECEDENT'S TAX
630-7-905 FILING RETURNS AND PAYMENT OF TAX
630-7-906 AMENDED RETURNS
630-7-907 CERTIFICATION OF PAYMENT
630-7-908 NONPAYMENT OF TAY; LIEN FOR UNPAID TAXES;
CERTIFICATES OF RELEASE FROM LIEN
With respect to transfers in inheritance from decedents dying before January 1, 1980 and for transfers in gift made before January 1, 1980, Virginia imposed inheritance and gift taxes levied on the shares of the beneficiaries of the property of the decedent or donor. Virginia first enacted an inheritance tax in 1844 and the tax was continuous (except for the years 1884 to 1896) until terminated for decedents dying on and after January 1, 1980.
Chapter 838 of the 1978 Acts of Assembly replaced the inheritance and gift taxes with a Virginia estate tax in an amount equal to the amount of the state death tax credit allowable under § 2011 of the Internal Revenue Code. However, Chapter 838 further provided that the inheritance and gift tax laws would remain in force upon estates of decedents dying prior to January 1, 1980 and for gifts made prior to January 1, 1980, and that all taxes due under those laws, such as on remainder interests, would be collected.
2. The Virginia estate tax statutes at §§ 58.1-900 through 58.1-938 should be referred to for provisions not regulated herein.
B. In general. 1. The statute imposes the estate tax in an amount equal to the maximum amount of the credit for state death taxes allowable under § 2011 of the Internal Revenue Code. There is no credit against the Virginia estate tax for taxes paid on previous transfers by gift or inheritance of any property in the estate.
2. Waivers from the department are not required under Virginia law for the transfer of intangible property from the name of a resident or nonresident decedent.
3. A partner's interest in partnership property real, personal or mixed shall be considered an intangible asset.
630-7-901 Definitions. A. Federal credit. The following table gives the computation of the maximum credit that was allowable under § 2011 on January 1, 1978:
Adjusted Adjusted Credit on Rate of
taxable estate taxable amount in credit on
equal to estate column (1) excess over
or more than-- less than-- amount in
$ 0 $ 40,000 $ 0 None
40,000 90,000 0 0.8
90,000 140,000 400 1.6
140,000 240,000 1,200 2.4
240,000 440,000 3,600 3.2
440,000 640,000 10,000 4.0
640,000 840,000 18,000 4.8
840,000 1,040,000 27,600 5.6
1,040,000 1,540,000 38,800 6.4
1,540,000 2,040,000 70,800 7.2
2,040,000 2,540,000 106,800 8.0
2,540,000 3,040,000 146,800 8.8
3,040,000 3,540,000 190,800 9.6
3,540,000 4,040,000 238,800 10.4
4,040,000 5,040,000 290,800 11.2
5,040,000 6,040,000 402,800 12.0
6,040,000 7,040,000 522,800 12.8
7,040,000 8,040,000 650,800 13.6
8,040,000 9,040,000 786,800 14.4
9,040,000 10,040,000 930,800 15.2
10,040,000 ... 1,082,800 16.0
B. Nonresident alien means a decedent who was not a resident or citizen of the United States at the time of his or her death.
C. Personal representative includes persons listed in § 1-13.21, Code of Virginia.
D. "Resident means a decedent who was domiciled in the Commonwealth of Virginia at his death." § 58.1-901. The determination of domicile is a factual matter which must be resolved on an individual case basis. A person can have only one domicile. If he has two or more places of abode, his domicile is the one which is determined to be his permanent home. Consideration is given to a number of factors in determining a decedent's domicile, including the following: length of time of residence; place of birth and marriage; place of business, profession or employment; residence of family; reason for acquiring or abandoning domicile; situs of real and tangible property; location of savings and checking accounts; motor vehicle registration and licensing; motor vehicle operator's license; voter registration; membership in clubs and civic groups; charitable contributions; in the case of a minor decedent, domicile of parents; and in the case of a married decedent, domicile of husband or wife and children.
No single factor is dispositive in determining domicile; rather, the factors are examined collectively to determine if the intent to acquire or abandon Virginia domicile exists. A simple declaration of intent to abandon domicile, or physical presence elsewhere, is insufficient to abrogate Virginia domicile.
E. Resident alien means a decedent who was not a citizen of the United States, but was a resident of the United States.
630-7-902. Out-of-state tax credit against resident's tax. The amount calculated in § 58.1-902B(2) is described by the formula which follows.
Note: This calculation is to be compared with the calculation under § 58.1-902B(1), and the lesser amount will be the out-of-state tax credit.
Value of resident's tangible personal
The credit under § 58.1-902B(1) and (2) will be computed on a state-by-state basis. If a state does not impose a death tax, there will be no credit for property located in that state.
630-7-903. Nonresident's tax. The nonresident's tax calculated in § 58.1-903A is described by the formula:
Value of property
taxable in Virginia X Federal credit for
630-7-904. Alien decedent's tax. A. The formula for an alien decedent's tax calculated under § 58.1-904A is as follows:
Value of property
taxable in Virginia X Federal credit for
Value of property State death taxes
taxable by U.S.
B. The "value of property taxable in Virginia" in the numerator of the formula in § 58.1-904A means the value reported for federal estate tax purposes of:
(1) Real property located in Virginia;
(2) Tangible personal property having an actual situs in Virginia;
(3) Intangible property physically present in Virginia, including, but not limited to:
630-7-905. Filing returns and payment of tax. §58.1-905 provides for extension of time for filing of the Virginia estate tax return. There is no provision for extension of time for payment. The tax is due nine (9) months after the death of the decedent. If not paid when due, interest will accrue from the expiration of nine months after the decedent's death. If the return is filed and the tax paid at the expiration of an extension of time for the filing of the return, interest will accrue upon the tax for the period between the date of expiration of nine months after the decedent's death and the date of full payment.
630-7-906. Amended returns. "Written notice of such deficiency" of federal estate taxes required to be filed with the department according to § 58.1-906B shall be a copy of the federal adjustments.
Amended returns for refund of estate tax must be filed according to the provisions of § 58.1-1823 and regulations promulgated thereunder.
630-7-907. Certification of payment. If a return is required to be filed, the department will certify the payment of the tax, or that no tax is due, to the personal representative and will file a copy with the Internal Revenue Service. The department will not record these certifications with clerks of court. No certification will be issued if no tax return is required to be filed under § 58.1-905.
630-7-908. Nonpayment of tax; lien for unpaid taxes; certificates of release from lien. No lien attaches to real or personal property of a nonresident decedent unless the estate of the nonresident decedent is taxable and the proper tax is not paid. A release of lien on a nonresident estate will be issued upon request after receipt by the department of a copy of the federal closing letter.
VIRGINIA ESTATE TAX REGULATIONS
VIRGINIA DEPARTMENT OF TAXATION
January 1, 1985
INTRODUCTION
These regulations for the Virginia Estate Tax are published by the authority granted the State Tax Commissioner under Virginia Code § 58-48.6 (§58.1-203 effective January 1, 1985) and are subject to amendment, revision and supplemental regulations as required or appropriate.
Amendments, revisions and updates to these regulations will be issued as replacement pages, each replacement page having on it the date of revision.
Each regulation section is numbered to reference the section of Title 58.1 of the Code of Virginia which it interprets. The first three digits, 630, identify these regulations, for purposes of the Virginia Register of Regulations, as regulations of the Department of Taxation. The digits following the first hyphen indicate the tax type, and the digits following the second hyphen indicate the section of Title 58.1 being interpreted. For example, the section number 630-7-900 identifies the agency (630), the estate tax (7), and the section of Title 58.1, Code of Virginia, which is interpreted (900).
W. H. Forst
State Tax Commissioner
Virginia Department of Taxation
P. O. Box 6-L
Richmond, Virginia 23282
-
-
-
-
-
-
- VIRGINIA ESTATE TAY REGULATIONS
-
-
-
-
-
EFFECTIVE DATE: January 1, 1985, with retroactive effect according to § 58-48.6 (recodified as §58.1-203).
EXPIRATION DATE: N/A
SUPERSEDES: All previous documents and any oral directives in conflict herewith.
REFERENCES: Code of Virginia §§ 58.1-900 through 58.1-908 are regulated herein.
AUTHORITY: § 58-48.6, Code of Virginia, and §58.1-203 on and after January 1, 1985.
SCOPE: Applicable to estates of decedents dying on and after January 1, 1980.
SUMMARY: These are initial regulations interpreting certain provisions of the Virginia estate tax, consisting of §§630-7-900 through 630-7-908.
ADOPTION DATE: September 19 , 1984.
TABLE OF CONTENTS
Regulation Section Page
630-7-900 TITLE
Preface
In general
630-7-901 DEFINITIONS
-
-
-
-
-
- Federal credit
Nonresident alien
Personal representative
Resident
Resident alien
- Federal credit
-
-
-
-
630-7-902 OUT-OF-STATE CREDIT AGAINST RESIDENT'S TAX
630-7-903 NONRESIDENT'S TAX
630-7-904 ALIEN DECEDENT'S TAX
630-7-905 FILING RETURNS AND PAYMENT OF TAX
630-7-906 AMENDED RETURNS
630-7-907 CERTIFICATION OF PAYMENT
630-7-908 NONPAYMENT OF TAY; LIEN FOR UNPAID TAXES;
CERTIFICATES OF RELEASE FROM LIEN
VIRGINIA ESTATE TAX REGULATIONS
With respect to transfers in inheritance from decedents dying before January 1, 1980 and for transfers in gift made before January 1, 1980, Virginia imposed inheritance and gift taxes levied on the shares of the beneficiaries of the property of the decedent or donor. Virginia first enacted an inheritance tax in 1844 and the tax was continuous (except for the years 1884 to 1896) until terminated for decedents dying on and after January 1, 1980.
Chapter 838 of the 1978 Acts of Assembly replaced the inheritance and gift taxes with a Virginia estate tax in an amount equal to the amount of the state death tax credit allowable under § 2011 of the Internal Revenue Code. However, Chapter 838 further provided that the inheritance and gift tax laws would remain in force upon estates of decedents dying prior to January 1, 1980 and for gifts made prior to January 1, 1980, and that all taxes due under those laws, such as on remainder interests, would be collected.
2. The Virginia estate tax statutes at §§ 58.1-900 through 58.1-938 should be referred to for provisions not regulated herein.
B. In general. 1. The statute imposes the estate tax in an amount equal to the maximum amount of the credit for state death taxes allowable under § 2011 of the Internal Revenue Code. There is no credit against the Virginia estate tax for taxes paid on previous transfers by gift or inheritance of any property in the estate.
2. Waivers from the department are not required under Virginia law for the transfer of intangible property from the name of a resident or nonresident decedent.
3. A partner's interest in partnership property real, personal or mixed shall be considered an intangible asset.
630-7-901 Definitions. A. Federal credit. The following table gives the computation of the maximum credit that was allowable under § 2011 on January 1, 1978:
(Table C--IRS Form 706)
Computation of Maximum Credit for State Death Taxes
(Based on federal adjusted taxable estate which is the
federal taxable estate reduced by $60,000)
Computation of Maximum Credit for State Death Taxes
(Based on federal adjusted taxable estate which is the
federal taxable estate reduced by $60,000)
Adjusted Adjusted Credit on Rate of
taxable estate taxable amount in credit on
equal to estate column (1) excess over
or more than-- less than-- amount in
-
-
- column (1)
- column (1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (Percent)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$ 0 $ 40,000 $ 0 None
40,000 90,000 0 0.8
90,000 140,000 400 1.6
140,000 240,000 1,200 2.4
240,000 440,000 3,600 3.2
440,000 640,000 10,000 4.0
640,000 840,000 18,000 4.8
840,000 1,040,000 27,600 5.6
1,040,000 1,540,000 38,800 6.4
1,540,000 2,040,000 70,800 7.2
2,040,000 2,540,000 106,800 8.0
2,540,000 3,040,000 146,800 8.8
3,040,000 3,540,000 190,800 9.6
3,540,000 4,040,000 238,800 10.4
4,040,000 5,040,000 290,800 11.2
5,040,000 6,040,000 402,800 12.0
6,040,000 7,040,000 522,800 12.8
7,040,000 8,040,000 650,800 13.6
8,040,000 9,040,000 786,800 14.4
9,040,000 10,040,000 930,800 15.2
10,040,000 ... 1,082,800 16.0
B. Nonresident alien means a decedent who was not a resident or citizen of the United States at the time of his or her death.
C. Personal representative includes persons listed in § 1-13.21, Code of Virginia.
D. "Resident means a decedent who was domiciled in the Commonwealth of Virginia at his death." § 58.1-901. The determination of domicile is a factual matter which must be resolved on an individual case basis. A person can have only one domicile. If he has two or more places of abode, his domicile is the one which is determined to be his permanent home. Consideration is given to a number of factors in determining a decedent's domicile, including the following: length of time of residence; place of birth and marriage; place of business, profession or employment; residence of family; reason for acquiring or abandoning domicile; situs of real and tangible property; location of savings and checking accounts; motor vehicle registration and licensing; motor vehicle operator's license; voter registration; membership in clubs and civic groups; charitable contributions; in the case of a minor decedent, domicile of parents; and in the case of a married decedent, domicile of husband or wife and children.
No single factor is dispositive in determining domicile; rather, the factors are examined collectively to determine if the intent to acquire or abandon Virginia domicile exists. A simple declaration of intent to abandon domicile, or physical presence elsewhere, is insufficient to abrogate Virginia domicile.
E. Resident alien means a decedent who was not a citizen of the United States, but was a resident of the United States.
630-7-902. Out-of-state tax credit against resident's tax. The amount calculated in § 58.1-902B(2) is described by the formula which follows.
Note: This calculation is to be compared with the calculation under § 58.1-902B(1), and the lesser amount will be the out-of-state tax credit.
Value of resident's tangible personal
-
- property, real property and real X Federal credit for
-
- Value of gross estate
The credit under § 58.1-902B(1) and (2) will be computed on a state-by-state basis. If a state does not impose a death tax, there will be no credit for property located in that state.
630-7-903. Nonresident's tax. The nonresident's tax calculated in § 58.1-903A is described by the formula:
Value of property
taxable in Virginia X Federal credit for
-
- Value of gross estate State death taxes
630-7-904. Alien decedent's tax. A. The formula for an alien decedent's tax calculated under § 58.1-904A is as follows:
Value of property
taxable in Virginia X Federal credit for
Value of property State death taxes
taxable by U.S.
B. The "value of property taxable in Virginia" in the numerator of the formula in § 58.1-904A means the value reported for federal estate tax purposes of:
(1) Real property located in Virginia;
(2) Tangible personal property having an actual situs in Virginia;
(3) Intangible property physically present in Virginia, including, but not limited to:
-
-
- (a) Stock in a corporation organized under the laws of Virginia;
-
-
-
- (b) Interests in real property located in Virginia, including mineral interests, royalties, production payments, leasehold interests, or working interests in oil, gas, coal or any other minerals;
-
- (c) Bonds issued by Virginia corporations or political subdivisions
-
-
- (d) Deposits in Virginia financial institutions;
-
-
-
- (e) Contract rights, royalties, accounts payable and other debts owed by Virginia residents to the decedent; and
-
-
-
- (f) Any other valuable rights which can be enforced in Virginia courts.
-
630-7-905. Filing returns and payment of tax. §58.1-905 provides for extension of time for filing of the Virginia estate tax return. There is no provision for extension of time for payment. The tax is due nine (9) months after the death of the decedent. If not paid when due, interest will accrue from the expiration of nine months after the decedent's death. If the return is filed and the tax paid at the expiration of an extension of time for the filing of the return, interest will accrue upon the tax for the period between the date of expiration of nine months after the decedent's death and the date of full payment.
630-7-906. Amended returns. "Written notice of such deficiency" of federal estate taxes required to be filed with the department according to § 58.1-906B shall be a copy of the federal adjustments.
Amended returns for refund of estate tax must be filed according to the provisions of § 58.1-1823 and regulations promulgated thereunder.
630-7-907. Certification of payment. If a return is required to be filed, the department will certify the payment of the tax, or that no tax is due, to the personal representative and will file a copy with the Internal Revenue Service. The department will not record these certifications with clerks of court. No certification will be issued if no tax return is required to be filed under § 58.1-905.
630-7-908. Nonpayment of tax; lien for unpaid taxes; certificates of release from lien. No lien attaches to real or personal property of a nonresident decedent unless the estate of the nonresident decedent is taxable and the proper tax is not paid. A release of lien on a nonresident estate will be issued upon request after receipt by the department of a copy of the federal closing letter.
Rulings of the Tax Commissioner