West Virginia Code 11-13EE-9 – Failure to keep records of investment credit property
A taxpayer who does not keep the records required for identification of investment credit property is subject to the following rules:
Terms Used In West Virginia Code 11-13EE-9
- Capital investment in new machinery and equipment: means :
(A) Tangible personal property in the form of machinery and equipment that is purchased on or after the effective date of this article and placed in service for direct use in the production of coal, when the original or first use of the machinery or equipment in this state commences on or after the effective date of this article. See West Virginia Code 11-13EE-2
- Property: means tangible personal property and is limited to new machinery and equipment that is depreciable or amortizable for federal income tax purposes and that has a useful life of five or more years for federal income tax purposes. See West Virginia Code 11-13EE-2
- Taxpayer: means any person exercising the privilege of severing, extracting, reducing to possession and producing coal for sale, profit or commercial use coal, which privilege is taxable under §. See West Virginia Code 11-13EE-2
- This state: means the State of West Virginia. See West Virginia Code 11-13EE-2
(1) A taxpayer is treated as having disposed of, during the taxable year, any machinery and equipment that the taxpayer cannot establish was still on hand, in this state, at the end of that year.
(2) If a taxpayer cannot establish when capital investment in new machinery and equipment property was reported for purposes of claiming this credit during the taxable year the machinery or equipment was placed in service or use, the taxpayer is treated as having placed it in service or use in the most recent prior taxable year in which similar machinery and equipment was placed in service or use, unless the taxpayer can establish that the machinery and equipment placed in service or use in the most recent taxable year is still on hand. In that event, the taxpayer will be treated as having placed the returned machinery and equipment in service or use in the next most recent taxable year.