500AC: Schedule of Affiliated Corporations Consolidated and Combined Filers (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Schedule 500AC reports an affiliated corporation’s share of income, Virginia adjustments, apportionment calculations, and federal tax items for a combined or consolidated group return. A separate schedule is completed for each affiliate and submitted with the parent comp
Who files this form
Complete a separate 2025 Virginia Schedule 500AC for each affiliate in a combined or consolidated Virginia Form 500 group return. Submit each schedule with the parent company’s group return.
What you'll need
Have these forms and details available to complete the schedule:
- The parent company’s Virginia Form 500 group return, including its name and federal employer identification number (FEIN).
- Each affiliate’s name, FEIN, address, NAICS code, business activity description, and membership begin 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.
- Schedule 500AB, Line 10, for any taxable addition reported in Section D.
- Federal Form 1120 information for taxable income, net operating loss and special deductions, and tax-exempt interest from Schedule K or M-1.
- Federal Form 4562 information for special depreciation allowance, property subject to a Section 168(f)(1) election, and other depreciation.
The schedule refers to the Form 500 instructions for addition and subtraction codes and to the Schedule 500A 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 give a mailing address or e-filing directions.
Common mistakes
- Leaving out an affiliate’s schedule: The form reminds filers to complete Schedule 500AC for each affiliate and submit it with the parent company’s group return.
- Overlooking the annual manufacturer certification: For the manufacturer’s modified apportionment method, Section B requires wage and employment certification each year. The certification states that average weekly wages of full-time employees exceed the lower of the state or local industry average, and average annual full-time employment is at least 90% of base-year employment.
Questions people ask
Do I complete one schedule for the whole group?
No. Complete Schedule 500AC for each affiliate and submit the schedules with the parent company’s combined or consolidated Virginia Form 500 group return.
Which parent company name and FEIN should I use?
Use the parent company name shown on the Virginia Form 500 group return and the parent company FEIN shown on Virginia Form 500.
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.
Where can I find details about apportionment?
The form directs you to the Schedule 500A instructions for information on apportionment methods and computations.