Bulletin Number
VTB 82-24
Tax Type
Corporation Income Tax
Estate Tax
Individual Income Tax
Description
Individual/Corporate
Topic
ACRS Modifications
Date Issued
12-01-1982
Below is reproduced Virginia Tax Bulletin 82-24, concerning Accelerated Cost Recovery System (ACRS) for taxable years beginning on or after January 1, 1982.
When computing Virginia taxable income, individuals, corporations and other taxpayers are required to make an addition which is equal to 30% of the federal deduction under the Accelerated Cost Recovery System (ACRS). The ACRS deduction is one of several claimed on federal form 4562, however not all deductions claimed on form 4562 are subject to the 30% addition.
Items claimed on Subject to
federal form 4562 30% Addition
1. Election to expense recovery
property (Section 179 I.R.C.) No
2. Accelerated Cost Recovery System Yes
a) 3 year property Yes
b) 5 year property Yes
c) 10 year property Yes
d) 15 year public utility property Yes
e) 15 year real property low
income housing Yes
f) 15 year real property other
than low income housing Yes
3. Property subject to section
168(e)(2) election No
4. Depreciation of non-recovery
property No
5. Class Life Asset Depreciation
Range (CLADR) No
6. Other depreciation No
7. Amortization of property No
All deductions claimed under items 2(a) through 2(f) above are subject to the 30% addition regardless of whether or not the taxpayer elects to use the straight line method or a longer recovery period, and regardless of where the property is located.
Deductions claimed under other items on Form 4562 (i.e. elections under §§ 168(e) and 179 I.R.C.) are not considered part of ACRS for the purpose of the 30% addition. No additions or other adjustments are required for these items.
Tax Bulletins