W. Va. Code R. § 110-24-13g
Current through Register Vol. XLI, No. 50, December 13, 2024
Section 110-24-13g - Treatment Of Certain Charitable Expenses13g.1. When a charitable expense is incurred by a member of a combined group, the threshold question is whether the charitable contribution was paid from nonbusiness income, from business income that is unitary group business income, or from business income that is not unitary group business income. If the contribution was of property other than money, the question becomes whether the property was an asset that generated nonbusiness income, unitary group business income, or other business income from a separate line of business. In the event the property generated no income, the preceding sentence shall be applied as if the property generated income. Only when the charitable expense, or any part of the expense, was not paid from nonbusiness income or from business income that is not unitary business income, may the expense, or the portion of the expense, not paid from nonbusiness income, or from business income that is not unitary group business income, be applied against unitary group business income as provided in subsection 13g.2. of this section.13g.2. When the charitable expense incurred by a member of a combined group was paid from unitary group business income then, to the extent allowable as a deduction pursuant to IRC §170, it shall be subtracted first from the business income of the combined group, subject to the income limitations of IRC §170 applied to the entire business income of the group and any remaining amount shall then be treated as a nonbusiness expense allocable to the member that incurred the expense, subject to the income limitations of IRC §170 applied to the nonbusiness income of that specific member. If nonbusiness income is less than the nonbusiness charitable expenses, the difference may be carried forward. Any charitable deduction disallowed under the foregoing rule but allowed as a carryover deduction in a subsequent year, shall be treated as originally incurred in the subsequent year by the same member this subsection shall apply in the subsequent year in determining the allowable deduction in that year.13g.3. This section applies to contributions made during a taxable year beginning after December 31, 2008.W. Va. Code R. § 110-24-13g