• Home
  • Resources
  • VA Tax News
  • VA TAX NEWS - Governor McAuliffe Signs Bill Advancing Date of Income Tax Conformity to December 31, 2016

VA TAX NEWS - Governor McAuliffe Signs Bill Advancing Date of Income Tax Conformity to December 31, 2016

06 Feb 2017 4:58 PM | Anonymous

Under emergency legislation (House Bill 1521; Chapter 1 of the 2017 Acts of Assembly) passed by the 2017 General Assembly and signed by Governor McAuliffe on February 3, 2017, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from December 31, 2015, to December 31, 2016.  Tax Bulletin 17-1 provides taxpayers with directions on how to reconcile this legislation with their 2016 Virginia income tax returns.  This legislation allows Virginia to conform to federal tax legislation enacted during 2016 that would impact the filing of Virginia income tax returns, including the United States Appreciation for Olympians and Paralympians Act of 2016.

Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code (“IRC”) §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011.

Tax Bulletin 17-1 can be found on the Department’s website by clicking here.

If you have questions, please call our Customer Contact Center at (804) 367-8037. 
©2017, Virginia Society of Tax & Accounting Professionals, formerly The Accountants Society of Virginia, 
is a 501(c)6 non-profit organization.

PO Box 3363 | Warrenton, VA 20188 | Phone: (800) 927-2731 | Fax: (888) 403-0920 | asv@virginia-accountants.org

Powered by Wild Apricot Membership Software