502A: Multistate Pass-Through Entity Allocation and Apportionment of Income (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule 502A reports a pass-through entity’s allocation and apportionment of income. It calculates the apportionment percentage and separates allocable income from apportionable income for Form 502.
Who files this form
Schedule 502A is for pass-through entities allocating and apportioning income. It uses income amounts from Form 502 and provides spaces to calculate Virginia apportionment percentages.
The form includes methods for specific types of businesses and a multi-factor formula with double-weighted sales. The supplied text does not give a complete rule for who must file.
What you'll need
Have the following information ready:
- The business name as shown on Form 502 and its FEIN.
- Taxable income amounts from Form 502, Line 1.
- Total and Virginia amounts for the apportionment factors that apply to your business.
- Dividends received and, if your commercial domicile is outside Virginia, nonapportionable investment function income and loss.
If you are a certified company conducting business in certain disadvantaged localities and electing a modified apportionment method, enclose Schedule 500AP.
Manufacturers electing the modified method must enter the beginning date of the election year and provide the annual wage and employment certification.
Common mistakes
- Do not leave out Schedule 500AP if you check the box for a certified company in certain disadvantaged localities electing a modified apportionment method. The form says to enclose it.
- Do not overlook the annual certification for the manufacturer's modified apportionment method. The form requires certification each year 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
Which businesses use the single-factor computation?
Section B lists motor carriers, financial corporations, construction corporations, railway companies, retail companies, debt buyers, manufacturers electing the modified method in Section A, and certain enterprise data center operations.
How does the double-weighted sales calculation work?
Multiply the sales factor on Line 2(c) by 2 and enter it on Line 2(d). Add the property factor, payroll factor, and double-weighted sales factor on Line 2(e). For Line 2(f), divide that sum by 4, reduced by the number of factors, if any, having no denominator.
Where do I report dividends if my commercial domicile is in Virginia?
Enter dividends received on Schedule 502A, Section C, Line 2, and on Form 502, Line 4.
Where does apportionable income go on Form 502?
Enter Section C, Line 4, on Form 502, Line 6. If domiciled in Virginia, calculate it by subtracting Section C, Line 2, from Line 1. If not domiciled in Virginia, subtract Line 3(e) from Line 1.