Tax Type
Individual Income Tax
Description
Nonresident Real Property Owner Registration Requirements
Topic
Taxpayers
Date Issued
02-21-1991
February 21, 1991
Re: Request for Ruling: Individual Income Tax
Dear*****************
This will reply to your letter of December 7, 1990 requesting information regarding Virginia's Nonresident Real Property owner registration requirement. Specifically, you ask for clarification of the registration requirements applicable to a Virginia trust.
RULING
Va. Code Section § 58.1-302 defines a resident estate or trust as one of the following:
1. The estate of a decedent who at his death was domiciled in the Commonwealth:
2. A trust created by will of a decedent who at his death was domiciled in the Commonwealth:
3. A trust created by. or consisting of property of a person domiciled in the Commonwealth: or
4. A trust or estate which is being administered in the Commonwealth.
A Virginia resident trust or estate which receives more than $600 in annual rental income from real property located in Virginia, or which receives payments upon the transfer of fee simple title in real property in Virginia. is not required to register under the Nonresident Real Property owner Registration laws, Therefore, even though one or more of a resident trust's or estate's beneficiaries may be nonresidents of Virginia, the trust or estate need not file the Virginia Form R-5 or R-5P required by Va. Code §§ 58.1-316 and 58.1-317.
A resident or nonresident beneficiary of a Virginia trust or estate, although not required to be registered as a Virginia real property owner, will still be subject to Virginia income tax.
I hope that the foregoing has responded to your inquiries. If you need any additional information, please contact the department.
Sincerely.
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner