W. Va. Code R. § 110-21F-8

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

Section 110-21F-8 - Records Required for capital investment property

8.1.Records required. -- Every taxpayer who claims a rebate pursuant to W. Va. Code § 11-13EE-1, et seq., and this rule shall maintain adequate records establishing the following facts for each item of qualified investment property:

8.1.1. The property's identity;

8.1.2. The property's actual cost, or reasonably determined cost in the absence of actual cost;

8.1.3. Whether the machinery or equipment are new or refurbished property as defined in subsection 2.2.23 of this rule;

8.1.4. The property's useful life for federal income tax purposes;

8.1.5. The month and taxable year in which the property was placed in service or use;

8.1.6. The amount of rebate claimed; and

8.1.7. The date the property was disposed of, or otherwise ceased to be used at the mine or coal preparation and processing plant at which it was first placed in service or use.

8.2.Burden of proof. -- The burden of proof is on the taxpayer to establish by clear and convincing evidence that the taxpayer is entitled to the benefits allowed by W. Va. Code § 11-13EE-1, et seq.

8.3. A taxpayer who does not keep the records required by this rule for identification of the qualified investment property is subject to the following rules:

8.3.1. A taxpayer is treated as having disposed of, during the taxable year, any qualified investment property that the taxpayer cannot establish was still in use at the mine or coal preparation and processing plant at which it was first placed in use in this state, at the end of that taxable year.

8.3.2. If a taxpayer cannot establish when qualified investment property was placed in service or use for purposes of claiming this rebate, the taxpayer is treated as having placed the property in service or use in the most recent taxable year in which similar property was placed in service or use at the mine or coal preparation and processing plant.

8.4. A taxpayer placing qualified investment property in service or use at a coal mining operation in this state is required to keep the property in service or use for five years after the property is placed in service or use at that coal mining operation. If in any year the taxpayer cannot establish that qualified investment property is still in service or use at the coal mining operation at which it was first placed in service or use and used to qualify for the rebate under W. Va. Code § 11-13EE-1, et seq., and this rule, the property will be treated as having been taken out of service during that taxable year and the recapture tax may apply.

8.5. Recapture tax. -- Failure to maintain adequate records may result in imposition of the recapture tax imposed in W. Va. Code § 11-13EE-11.

W. Va. Code R. § 110-21F-8