Schedule B-1: Allowance for Governmental Obligations/Obligations Secured by Residential Property (2024)
West Virginia · WV Tax Division · Used for tax years 2024
West Virginia Schedule B-1 calculates the allowance for governmental obligations and obligations secured by residential property for Form CIT-120. It uses average monthly balances, total assets, and adjusted income to calculate the allowance reported on Schedule B, line 24.
What you'll need
The 2024 schedule uses these balances and tax form figures:
- Average monthly balances for federal obligations and securities; obligations of West Virginia and its political subdivisions; investments or loans primarily secured by mortgages or deeds of trust on residential property in West Virginia; and loans primarily secured by a lien or security agreement on a mobile home or double wide in West Virginia.
- Total assets shown on Schedule L of federal Form 1120 or 1120A.
- Income and adjustment figures from Schedule 1, line 1 or Schedule 2, line 1; Schedule B, lines 12 through 23; and Form CIT-120APT, Schedule A-2, lines 10, 11, and 12.
Questions people ask
Which obligations and loans are included on lines 1 through 4?
The form lists federal obligations and securities; obligations of West Virginia and its political subdivisions; investments or loans primarily secured by mortgages or deeds of trust on residential property in West Virginia; and loans primarily secured by a lien or security agreement on a mobile home or double wide in West Virginia.
How do I calculate the ratio on line 7?
Add lines 1 through 4 and enter the total on line 5. Divide line 5 by the total assets on line 6, then round to six decimal places.
How is adjusted income calculated on line 8?
Start with Schedule 1, line 1 or Schedule 2, line 1. Add Schedule B, line 12, subtract the sum of Schedule B, lines 13 through 23, and add Form CIT-120APT, Schedule A-2, lines 10, 11, and 12.
How do I calculate and report the allowance?
Multiply line 7 by line 8, disregarding the sign. Enter the allowance on Schedule B-1, line 9, and on Schedule B, line 24.