Conformity addition in Virginia

[Greta]

Client sold a rental house that had been nearly fully depreciated. Unrecaptured Section 1250 Gain = $57,365. Long term gain $236,919. Virginia added a conformity addition of $7908. How is that calculated? What about Conformity Subtraction just below?

[sjrcpa]

Theoretically it is the difference between federal depreciation and VA depreciation.

This in turn makes the federal gain different than the VA gain.

[Greta]

That is odd. The federal depreciation was over 27.5 years, started 25 yrs ago. There should not be a difference with the state. May I just wipe out this addition by putting the same amount under a subtraction?

[Accountant-Man]

Is VA a non-resident state?

[Greta]

Client is a full-year resident of Virginia... for the past 70 yrs.

[sjrcpa]

Were you depreciating more than just the house - appliances perhaps?

[Greta]

NO! Just the house! As of 1991 - long before this conformity stuff started years later.

I thought I would put the same amount as a conformity subtraction, and worry about it if VA Dept of Taxation questions it down the road...