{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-322.04.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-322.04.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-322.04.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-322.04.html"}],"law_id":67865,"edition_id":1,"section_id":67865,"structure_id":15071,"section_number":"58.1-322.04","catch_line":"Virginia taxable income; additional modifications","history":"2017, c. 444.","full_text":"In calculating Virginia taxable income pursuant to \u00a7 58.1-322, the following adjustments shall be made:\n\n1\n\nThere shall be added to or subtracted from federal adjusted gross income, as the case may be, the individual’s share, as beneficiary of an estate or trust, of the Virginia fiduciary adjustment determined under § 58.1-361.2\n\nThere shall be added or subtracted, as the case may be, the amounts provided in § 58.1-315 as transitional modifications.3\n\nTo the extent included in federal adjusted gross income, there shall be (i) subtracted from federal adjusted gross income, by a shareholder of an electing small business corporation (S corporation) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such taxable year begins, the shareholder’s allocable share of the income or gain of such electing small business corporation (S corporation) and (ii) added back to federal adjusted gross income, such that federal adjusted gross income shall be increased, by a shareholder of an electing small business corporation (S corporation) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such taxable year begins, the shareholder’s allocable share of the losses or deductions of such electing small business corporation (S corporation).\n\t\t\tTo the extent excluded from federal adjusted gross income, there shall be added to federal adjusted gross income, by a shareholder of an electing small business corporation (S corporation) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such taxable year begins, the value of any distribution paid or distributed to the shareholder by such electing small business corporation (S corporation).4\n\nNotwithstanding any other provision of law, the income from any disposition of real property that is held by the taxpayer for sale to customers in the ordinary course of the taxpayer’s trade or business, as defined in § 453(l)(1)(B) of the Internal Revenue Code, of property may, at the election of the taxpayer, be recognized under the installment method described under § 453 of the Internal Revenue Code, provided that (i) the election relating to the dealer disposition of the property has been made on or before the due date prescribed by law (including extensions) for filing the taxpayer’s return of the tax imposed under this chapter for the taxable year in which the disposition occurs and (ii) the dealer disposition is in accordance with restrictions or conditions established by the Department, which shall be set forth in guidelines developed by the Department. Along with such restrictions or conditions, the guidelines shall also address the recapture of such income under certain circumstances. The development of the guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).","order_by":null,"text":{"0":{"id":245782,"text":"In calculating Virginia taxable income pursuant to \u00a7 58.1-322, the following adjustments shall be made:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":245783,"text":"There shall be added to or subtracted from federal adjusted gross income, as the case may be, the individual’s share, as beneficiary of an estate or trust, of the Virginia fiduciary adjustment determined under § 58.1-361.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":245784,"text":"There shall be added or subtracted, as the case may be, the amounts provided in § 58.1-315 as transitional modifications.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":245785,"text":"To the extent included in federal adjusted gross income, there shall be (i) subtracted from federal adjusted gross income, by a shareholder of an electing small business corporation (S corporation) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such taxable year begins, the shareholder’s allocable share of the income or gain of such electing small business corporation (S corporation) and (ii) added back to federal adjusted gross income, such that federal adjusted gross income shall be increased, by a shareholder of an electing small business corporation (S corporation) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such taxable year begins, the shareholder’s allocable share of the losses or deductions of such electing small business corporation (S corporation).\n\t\t\tTo the extent excluded from federal adjusted gross income, there shall be added to federal adjusted gross income, by a shareholder of an electing small business corporation (S corporation) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such taxable year begins, the value of any distribution paid or distributed to the shareholder by such electing small business corporation (S corporation).","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":245786,"text":"Notwithstanding any other provision of law, the income from any disposition of real property that is held by the taxpayer for sale to customers in the ordinary course of the taxpayer’s trade or business, as defined in § 453(l)(1)(B) of the Internal Revenue Code, of property may, at the election of the taxpayer, be recognized under the installment method described under § 453 of the Internal Revenue Code, provided that (i) the election relating to the dealer disposition of the property has been made on or before the due date prescribed by law (including extensions) for filing the taxpayer’s return of the tax imposed under this chapter for the taxable year in which the disposition occurs and (ii) the dealer disposition is in accordance with restrictions or conditions established by the Department, which shall be set forth in guidelines developed by the Department. Along with such restrictions or conditions, the guidelines shall also address the recapture of such income under certain circumstances. The development of the guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"ancestry":[{"id":15071,"edition_id":1,"name":"Individual Income Tax","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:51:58","date_modified":"2026-06-26 03:51:58","permalink":{"id":253971,"object_type":"structure","relational_id":15071,"identifier":"2","token":"58.1\/I\/3\/2","url":"\/58.1\/I\/3\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62270,"structure_id":15071,"section_number":"58.1-320","catch_line":"Imposition of tax","url":"\/58.1-320\/","token":"58.1\/I\/3\/2\/58.1-320","metadata":false},{"id":77087,"structure_id":15071,"section_number":"58.1-321","catch_line":"Exemptions and exclusions","url":"\/58.1-321\/","token":"58.1\/I\/3\/2\/58.1-321","metadata":false},{"id":74654,"structure_id":15071,"section_number":"58.1-322","catch_line":"Virginia taxable income of residents","url":"\/58.1-322\/","token":"58.1\/I\/3\/2\/58.1-322","metadata":false},{"id":85168,"structure_id":15071,"section_number":"58.1-322.01","catch_line":"Virginia taxable income; additions","url":"\/58.1-322.01\/","token":"58.1\/I\/3\/2\/58.1-322.01","metadata":false},{"id":81784,"structure_id":15071,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","url":"\/58.1-322.02\/","token":"58.1\/I\/3\/2\/58.1-322.02","metadata":false},{"id":79461,"structure_id":15071,"section_number":"58.1-322.03","catch_line":"Virginia taxable income; deductions","url":"\/58.1-322.03\/","token":"58.1\/I\/3\/2\/58.1-322.03","metadata":false},{"id":67865,"structure_id":15071,"section_number":"58.1-322.04","catch_line":"Virginia taxable income; additional modifications","url":"\/58.1-322.04\/","token":"58.1\/I\/3\/2\/58.1-322.04","metadata":false},{"id":82610,"structure_id":15071,"section_number":"58.1-322.1","catch_line":"Expired","url":"\/58.1-322.1\/","token":"58.1\/I\/3\/2\/58.1-322.1","metadata":false},{"id":68261,"structure_id":15071,"section_number":"58.1-322.2","catch_line":"Expired","url":"\/58.1-322.2\/","token":"58.1\/I\/3\/2\/58.1-322.2","metadata":false},{"id":60516,"structure_id":15071,"section_number":"58.1-323","catch_line":"Repealed","url":"\/58.1-323\/","token":"58.1\/I\/3\/2\/58.1-323","metadata":false},{"id":87236,"structure_id":15071,"section_number":"58.1-323.1","catch_line":"Repealed","url":"\/58.1-323.1\/","token":"58.1\/I\/3\/2\/58.1-323.1","metadata":false},{"id":76604,"structure_id":15071,"section_number":"58.1-324","catch_line":"Married individuals","url":"\/58.1-324\/","token":"58.1\/I\/3\/2\/58.1-324","metadata":false},{"id":57460,"structure_id":15071,"section_number":"58.1-325","catch_line":"Virginia taxable income of nonresident individuals, partners, beneficiaries and certain shareholders","url":"\/58.1-325\/","token":"58.1\/I\/3\/2\/58.1-325","metadata":false},{"id":86632,"structure_id":15071,"section_number":"58.1-326","catch_line":"Married individuals when one nonresident","url":"\/58.1-326\/","token":"58.1\/I\/3\/2\/58.1-326","metadata":false}],"previous_section":{"id":79461,"structure_id":15071,"section_number":"58.1-322.03","catch_line":"Virginia taxable income; deductions","url":"\/58.1-322.03\/","token":"58.1\/I\/3\/2\/58.1-322.03","metadata":false},"next_section":{"id":82610,"structure_id":15071,"section_number":"58.1-322.1","catch_line":"Expired","url":"\/58.1-322.1\/","token":"58.1\/I\/3\/2\/58.1-322.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-322.04\/","history_text":"

This law was first created in 2017. The record of its establishment is cataloged in chapter 444<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":82538,"section_number":"58.1-302","catch_line":"Definitions","order_by":null,"url":"\/58.1-302\/"},{"id":74528,"section_number":"58.1-315","catch_line":"Transitional modifications to Virginia taxable income","order_by":null,"url":"\/58.1-315\/"},{"id":74654,"section_number":"58.1-322","catch_line":"Virginia taxable income of residents","order_by":null,"url":"\/58.1-322\/"},{"id":69759,"section_number":"58.1-362","catch_line":"Virginia taxable income of a nonresident estate or trust","order_by":null,"url":"\/58.1-362\/"},{"id":57467,"section_number":"58.1-363","catch_line":"Share of a nonresident estate, trust, or beneficiary in income from Virginia sources","order_by":null,"url":"\/58.1-363\/"},{"id":62953,"section_number":"58.1-391","catch_line":"Virginia taxable income of owners of a pass-through entity","order_by":null,"url":"\/58.1-391\/"},{"id":58457,"section_number":"58.1-490","catch_line":"Declarations of estimated tax","order_by":null,"url":"\/58.1-490\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":54678,"section_number":"58.1-1200","catch_line":"Title","order_by":null,"url":"\/58.1-1200\/"},{"id":74528,"section_number":"58.1-315","catch_line":"Transitional modifications to Virginia taxable income","order_by":null,"url":"\/58.1-315\/"},{"id":74654,"section_number":"58.1-322","catch_line":"Virginia taxable income of residents","order_by":null,"url":"\/58.1-322\/"}],"permalink":{"id":253997,"object_type":"law","relational_id":67865,"identifier":"58.1-322.04","token":"58.1\/I\/3\/2\/58.1-322.04","url":"\/58.1-322.04\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-322.04\/","token":"58.1\/I\/3\/2\/58.1-322.04","dublin_core":{"Title":"Virginia taxable income; additional modifications","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-322.04","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

In calculating Virginia taxable income pursuant to \u00a7 58.1-322<\/a>, the following adjustments shall be made:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> There shall be added to or subtracted from federal adjusted gross income, as the case may be, the individual<\/span>’s share, as beneficiary of an estate<\/span> or trust<\/span>, of the Virginia fiduciary adjustment<\/span> determined under § 58.1-361<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> There shall be added or subtracted, as the case may be, the amounts provided in § 58.1-315<\/a> as transitional modifications. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To the extent included in federal adjusted gross income, there shall be (i) subtracted from federal adjusted gross income, by a shareholder of an electing small business corporation<\/span> (S corporation<\/span>) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200<\/a> et seq.) for the calendar year in which such taxable year begins, the shareholder’s allocable share of the income or gain of such electing small business corporation<\/span> (S corporation<\/span>) and (ii) added back to federal adjusted gross income, such that federal adjusted gross income shall be increased, by a shareholder of an electing small business corporation<\/span> (S corporation<\/span>) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200<\/a> et seq.) for the calendar year in which such taxable year begins, the shareholder’s allocable share of the losses or deductions of such electing small business corporation<\/span> (S corporation<\/span>).\n\t\t\tTo the extent excluded from federal adjusted gross income, there shall be added to federal adjusted gross income, by a shareholder of an electing small business corporation<\/span> (S corporation<\/span>) that is subject to the bank franchise tax imposed under Chapter 12 (§ 58.1-1200<\/a> et seq.) for the calendar year in which such taxable year begins, the value of any distribution paid or distributed to the shareholder by such electing small business corporation<\/span> (S corporation<\/span>). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Notwithstanding any other provision of law<\/span>, the income from any disposition<\/span> of real property that is held by the taxpayer<\/span> for sale to customers in the ordinary course of the taxpayer<\/span>’s trade or business, as defined in § 453(l)(1)(B) of the Internal Revenue Code, of property may, at the election of the taxpayer<\/span>, be recognized under the installment method described under § 453 of the Internal Revenue Code, provided that (i) the election relating to the dealer disposition<\/span> of the property has been made on or before the due date prescribed by law<\/span> (including extensions) for filing the taxpayer<\/span>’s return of the tax imposed under this chapter for the taxable year in which the disposition<\/span> occurs and (ii) the dealer disposition<\/span> is in accordance with restrictions or conditions established by the Department<\/span>, which shall be set forth in guidelines developed by the Department<\/span>. Along with such restrictions or conditions, the guidelines shall also address the recapture of such income under certain circumstances. The development of the guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRGINIA TAXABLE INCOME; ADDITIONAL MODIFICATIONS (\u00a7 58.1-322.04)\n\nIn calculating Virginia taxable income pursuant to \u00a7 58.1-322, the following\nadjustments shall be made:\n\n1. There shall be added to or subtracted from federal adjusted gross income, as\nthe case may be, the individual’s share, as beneficiary of an estate or\ntrust, of the Virginia fiduciary adjustment determined under § 58.1-361.\n\n2. There shall be added or subtracted, as the case may be, the amounts provided\nin § 58.1-315 as transitional modifications.\n\n3. To the extent included in federal adjusted gross income, there shall be (i)\nsubtracted from federal adjusted gross income, by a shareholder of an electing\nsmall business corporation (S corporation) that is subject to the bank franchise\ntax imposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in\nwhich such taxable year begins, the shareholder’s allocable share of the\nincome or gain of such electing small business corporation (S corporation) and\n(ii) added back to federal adjusted gross income, such that federal adjusted\ngross income shall be increased, by a shareholder of an electing small business\ncorporation (S corporation) that is subject to the bank franchise tax imposed\nunder Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in which such\ntaxable year begins, the shareholder’s allocable share of the losses or\ndeductions of such electing small business corporation (S corporation).\n\t\t\tTo the extent excluded from federal adjusted gross income, there shall be\nadded to federal adjusted gross income, by a shareholder of an electing small\nbusiness corporation (S corporation) that is subject to the bank franchise tax\nimposed under Chapter 12 (§ 58.1-1200 et seq.) for the calendar year in\nwhich such taxable year begins, the value of any distribution paid or\ndistributed to the shareholder by such electing small business corporation (S\ncorporation).\n\n4. Notwithstanding any other provision of law, the income from any disposition\nof real property that is held by the taxpayer for sale to customers in the\nordinary course of the taxpayer’s trade or business, as defined in §\n453(l)(1)(B) of the Internal Revenue Code, of property may, at the election of\nthe taxpayer, be recognized under the installment method described under §\n453 of the Internal Revenue Code, provided that (i) the election relating to the\ndealer disposition of the property has been made on or before the due date\nprescribed by law (including extensions) for filing the taxpayer’s return\nof the tax imposed under this chapter for the taxable year in which the\ndisposition occurs and (ii) the dealer disposition is in accordance with\nrestrictions or conditions established by the Department, which shall be set\nforth in guidelines developed by the Department. Along with such restrictions or\nconditions, the guidelines shall also address the recapture of such income under\ncertain circumstances. The development of the guidelines shall be exempt from\nthe Administrative Process Act (§ 2.2-4000 et seq.).\n\nHISTORY: 2017, c. 444.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}