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110CSR21G

7.1.2. Individual owners of a pass-through entity are West Virginia residents if they meet the definition of “resident individual” specified in W. Va. Code §11-21-7.

7.1.3. Estates or trusts that are owners of a pass-through entity are West Virginia residents if they meet the definition of “resident estate or trust” specified in W. Va. Code §11-21-7.

7.1.4. Individual owners of a pass-through entity are nonresidents of West Virginia if they meet the definition of “nonresident individual” specified in W. Va. Code §11-21-7.

7.1.5, Estates or trusts that are owners of a pass-through entity are nonresidents of West Virginia if they meet the definition of “nonresident estate or trust” specified in W. Va. Code §11-21-7.

7.1.6. For the purposes of the electing PTE tax computation, owners may not be classified as part- year residents. Part-year residents will be calculated as nonresidents on the electing PTE return.

7.2. Computation For Resident Owners. --

7.2.1. An electing PTE’s calculation of its pass-through entity taxable income must include all items of income, gain, loss, and deduction, to the extent they would flow through and be included in the income of resident owners that are taxable under W. Va. Code §11-21-1 et seq.

7.2.2. Pass-through entity taxable income includes each resident owner's share of the electing PTE’s income or loss, subject to increasing and decreasing modifications directly applicable to the electing PTE’s income or loss that is attributable to West Virginia. Modifications subject to the provisions of W. Va. Code §11-21-17 and W. Va. Code §11-21-17a shall be made in accordance with the requirements of those sections as applicable.

7.2.3. The West Virginia personal exemption specified in W. Va. Code §11-21-16 may not be applied by the electing PTE in determining electing PTE taxable income.

7.2.4, West Virginia residents are taxable on all of their pass-through entity income regardless of the pass-through entity’s allocation and apportionment. However, subject to the requirements and limitations of W. Va. Code §11-21-20, owners of the electing PTE may claim a credit for income taxes paid to another state. Any such credit may also be used as a credit against the PTE’s tax liability as determined by such individual resident owner’s includable income in any PTE tax liability pursuant to Section 7.2.1 to the extent paid on behalf of such owner through nonresident withholding, a composite return, or a similar PTE in such other state.

7.2.5, In determining West Virginia taxable income, an electing PTE must add to its West Virginia taxable income any state and local taxes to the extent that the electing PTE deducted such taxes in determining the electing PTE’s federal taxable income.

7.3. Computation For Nonresident Owners.

7.3.1. A pass-through entity’s taxable income includes each nonresident owner's share of the electing PTE’s income or loss, subject to increasing and decreasing modifications directly applicable to the pass-through entity’s income or loss attributable to West Virginia. Modifications subject to the provisions of W. Va. Code §11-21-17 and W. Va. Code §11-21-17a shall be made in accordance with the requirements of those sections as applicable.