                                 CODE OF VIRGINIA

SHARE OF A NONRESIDENT ESTATE, TRUST, OR BENEFICIARY IN INCOME FROM VIRGINIA
SOURCES (§ 58.1-363)

A. The share of a nonresident estate or trust under § 58.1-362 and the share of
a nonresident beneficiary of any estate or trust under provisions otherwise
applicable to nonresident individuals in estate or trust income or loss
attributable to Virginia sources shall be determined as follows:

   1. There shall be determined the items of income, gain, loss and deduction
   derived from Virginia sources, which enter into the computation of
   distributable net income of the estate or trust for the taxable year
   (including such items from another estate or trust of which the first estate
   or trust is a beneficiary).

   2. There shall be added or subtracted (as the case may be) the modifications
   described in &#xA7;&#xA7; 58.1-322.01, 58.1-322.02, 58.1-322.03, and
   58.1-322.04 to the extent relating to items of income, gain, loss and
   deduction derived from Virginia sources which enter into the computation of
   distributable net income (including all such items from another estate or
   trust of which the first estate or trust is a beneficiary). No modification
   shall be made under this subsection which has the effect of duplicating an
   item already reflected in the computation of distributable net income.

   3. The amounts determined under subdivisions 1 and 2 shall be allocated among
   the estate or trust and its beneficiaries (including, solely for the purposes
   of this allocation, resident beneficiaries) in proportion to their respective
   shares of distributable net income. The amounts so allocated shall have the
   same character under this article as under the laws of the United States
   relating to federal income taxes. Where an item entering into the computation
   of such amounts is not characterized by such laws, it shall have the same
   character as if realized directly from the source from which realized by the
   estate or trust, or incurred in the same manner as incurred by the estate or
   trust.

B. If the estate or trust has no distributable net income for the taxable year,
the share of each beneficiary (including, solely for the purpose of such
allocation, resident beneficiaries) in the net amount determined under
subdivisions A 1 and 2 shall be in proportion to his share of the estate or
trust income for such year, under local law or the governing instrument, which
is required to be distributed currently and any other amounts of such income
distributed in such year. Any balance of such net amount shall be allocated to
the estate or trust.

HISTORY: Code 1950, § 58-151.025; 1971, Ex. Sess., c. 171; 1984, c. 675; 2017,
c. 444.