Virginia Finds Taxpayers Entitled to Subtraction for Long-Term Capital Gain

The Virginia Tax Commissioner found that Taxpayers were entitled to the subtraction for a long-term capital gain and abated the assessment accordingly. Taxpayers filed an individual income tax return, claiming a subtraction for a long-term capital gain. The Department of Taxation denied the subtraction because the investment that created the capital gain wasn’t a qualified investment. Taxpayers contended that they met all the statutory requirements to claim the subtraction. Upon review, the commissioner found that Taxpayers provided evidence that the investment was made in the form of equity. Accordingly, the commissioner held that Taxpayers were entitled to the subtraction and ...