                                 CODE OF VIRGINIA

VIRGINIA TAXABLE INCOME OF NONRESIDENT INDIVIDUALS, PARTNERS, BENEFICIARIES AND
CERTAIN SHAREHOLDERS (§ 58.1-325)

A. The Virginia taxable income of a nonresident individual, partner or
beneficiary shall be an amount bearing the same proportion to his Virginia
taxable income, computed as though he were a resident, as the net amount of his
income, gain, loss and deductions from Virginia sources bears to the net amount
of his income, gain, loss and deductions from all sources.

B. For a nonresident individual who is a shareholder in an electing small
business corporation (S corporation), there shall be included in his Virginia
taxable income his share of the taxable income of such corporation, and his
share of any net operating loss of such corporation shall be deductible from his
Virginia taxable income.

HISTORY: Code 1950, § 58-151.013; 1971, Ex. Sess., c. 171; 1972, c. 827; 1973,
cc. 198, 345, 458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694, 781; 1977, cc.
297, 612; 1978, cc. 67, 158; 1979, cc. 226, 596; 1981, cc. 402, 414; 1982, c.
633; 1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675, 729.