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Virginia Regulatory Town Hall

Proposed Text

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Action:
Repeal Virginia Estate Tax Regulation As It Provides No Guidance ...
Stage: Fast-Track
 
23VAC10-300

CHAPTER 300
ESTATE TAX (REPEALED)

23VAC10-300-20

23VAC10-300-20. Definitions. (Repealed.)

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)

 

Adjusted taxable estate equal to or more than--

Adjusted taxable estate less than--

Credit on amount in column (1)

Rate of credit on excess over amount in column (1)

 

(1)

(2)

(3)

(4)

 

(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.

23VAC10-300-30

23VAC10-300-30. Out-of-state tax credit against resident's tax. (Repealed.)

The amount calculated in § 58.1-902 B (2) is described by the formula which follows.

Note: This calculation is to be compared with the calculation under § 58.1-902 B (1), and the lesser amount will be the out-of-state tax credit.

Value of resident's tangible
personal property, real property
and real property interests taxed
in other states




X



Federal credit for
State death taxes

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.

23VAC10-300-50

23VAC10-300-50. Alien decedent's tax. (Repealed.)

A. The formula for an alien decedent's tax calculated under § 58.1-904 A is as follows:

 

Value of property
taxable in Virginia




X



Federal credit for
State death taxes

__________________

Value of property
taxable by U.S.

B. The "value of property taxable in Virginia" in the numerator of the formula in § 58.1-904 A 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.

23VAC10-300-80

23VAC10-300-80. Certification of payment. (Repealed.)

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.

23VAC10-300-90

23VAC10-300-90. Nonpayment of tax; lien for unpaid taxes; certificates of release from lien. (Repealed.)

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.

23VAC10-300-9998

FORMS (23VAC10-300)

Virginia Estate Tax Return, Form EST-80 (rev. 3/07).