Virginia Bank Franchise Tax

A shareholder of a bank may be required to make certain adjustments to his or her federal adjusted gross income. Such adjustments are required only if the shareholder invests in a bank that (1) is subject to the Virginia Bank Franchise Tax for state tax purposes ( Va. Code § 58.1-1207 ) and (2) has elected to be taxed as a small business corporation (S corporation) for federal tax purposes. Complete the worksheet below to determine the amount of your adjustment.

Computation of Virginia Bank Franchise Tax Deduction

A shareholder of a bank may be required to make certain adjustments to his or her federal adjusted gross income. Complete the worksheet below to determine the amount of your adjustment.

If your allocable share of the income or gain of the bank was included in federal adjusted gross income, enter the amount here _____________________

If your allocable share of the losses or deductions of the bank was included in federal adjusted gross income, enter the amount here. _____________________

Enter the value of any distributions paid or distributed to you by the bank to the extent that such distributions were excluded from federal adjusted gross income. _____________________

Add line b and Line c. _____________________

Subtract line d from line a. This is your net deduction amount. If this amount is negative you must enter the amount on Schedule ADJ, line 8a and fill in the box marked "LOSS". _____________________