500AC: Schedule of Affiliated Corporations Consolidated and Combined Filers (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule 500AC reports an affiliated corporation’s share of income, Virginia adjustments, apportionment calculations, and federal tax line items for a combined or consolidated group return. A separate schedule is completed for each affiliate and submitted with the parent
Who files this form
Virginia Schedule 500AC is for affiliated corporations included in a combined or consolidated Virginia Form 500 group return. Complete a separate Schedule 500AC for each affiliate and submit it with the parent company’s group return.
What you'll need
Have the following information available to complete the schedule:
- The parent company’s name and FEIN as shown on Virginia Form 500.
- Each affiliate’s name, FEIN, address, NAICS code, business activity, and membership beginning and termination dates.
- The affiliate’s share of income reported on Form 500, apportionment information reported on Schedule 500A, and adjustments reported on Schedule 500ADJ.
- The taxable addition from Schedule 500AB, Line 10, if applicable.
- Federal Form 1120 income and deduction amounts, plus tax-exempt interest from Schedule K or M-1.
- Federal Form 4562 amounts for special depreciation allowance, property subject to a Section 168(f)(1) election, and other depreciation.
The form refers you to the Form 500 instructions for addition and subtraction codes, and to the Schedule 500A and 500AP instructions for apportionment methods and computations.
How to file
Complete Schedule 500AC for each affiliate and submit it with the parent company’s combined or consolidated Virginia Form 500 group return.
The supplied form does not specify a mailing address or an electronic filing method.
Common mistakes
- Leaving out an affiliate’s schedule: The form says to complete Schedule 500AC for each affiliate and submit it with the parent company’s group return.
- Using parent company details that do not match Form 500: Enter the parent company’s name and FEIN as shown on that return.
- Missing the annual manufacturer certification: For the manufacturer’s modified apportionment method, Section B requires a wage and employment certification each year. The checkbox certifies that average weekly wages of full-time employees exceed the lower of the state or local industry average, and that average annual full-time employment is at least 90% of base-year employment.
Questions people ask
What does Schedule 500AC report?
It reports an affiliated member’s share of income, apportionment information, Virginia adjustments, and specified federal line items.
Where do the Virginia addition and subtraction totals go?
Enter total additions from Section D, Line 7, on Section A, Line 2. Enter total subtractions from Section D, Line 17, on Section A, Line 4.
How is income apportioned to Virginia in Section A?
Multiply Section A, Line 13, by the percentage on Section C, Line 1 or Line 2(d), and enter the result on Section A, Line 14.
What date format should I use for affiliate membership dates?
Use mm/dd/yyyy for both the membership beginning date and the membership termination date.