W. Va. Code R. § 110-21-37a

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-21-37a - Nonresident S Corporation Shareholders

37a.1. Definition. - A nonresident S corporation shareholder is a nonresident individual who holds stock in a corporation that was formed in West Virginia, or that transacts business in West Virginia, and has in effect a valid election under Section 1362 of the Internal Revenue Code, 26 U.S.C. 1362.

37a.2. Definition - An S Corporation Doing Business In West Virginia. - An S corporation is doing business in West Virginia if it has any revenue from West Virginia sources, or if it engages in any purposeful revenue generating activity with the object of direct or indirect gain or economic benefit.

37a.3. In determining West Virginia adjusted gross income of a nonresident shareholder of any S corporation, such shareholder may only include in his or her West Virginia adjusted gross income such shareholder's pro rata share of the portion of the S corporation's income that was derived from or connected with West Virginia sources, that entered into such shareholder's federal adjusted gross income as filed by that shareholder on his or her federal income tax return for the taxable year.

W. Va. Code R. § 110-21-37a