Instructions For Preparing Form 500ec Virginia Cooperative Modified Net Income Tax Returns

Instructions For Preparing Form 500ec Virginia Cooperative Modified Net Income Tax Returns - 2016 Page 2

Line 21 Amount of other expenses allocated to electricity

sales to nonmembers in Virginia. Multiply Line 19

by Line 20.

Line 22 Nonmember share of expenses using method 1:

Line 18 plus Line 21. (Enter here and on Line 4).

Method 2

Line 23 Compute and Enter Nonmember Electricity Sales

Ratio: nonmember electricity sales divided by total

electricity sales.

Line 24 Total expenses attributed to all electricity sales in

Virginia.

Line 25 Nonmember share of expenses using method 2 :

Line 23 times Line 24. (Enter here and on Line 4 ).

SPECIAL INSTRUCTIONS FOR TAX CREDIT

ADJUSTMENT IN CONNECTION WITH

SCHEDULE 500CR

Each income tax credit available to the Electric Co-op must

be prorated by the nonmember ratio of electricity sales for the

taxable year in computing the allowable amount on Schedule

500CR. You may use the worksheet below to compute the

proper amount to enter on Schedule 500CR (each credit must

be prorated separately).

1) Enter the amount of qualifying credit

from the appropriate Part of Schedule

500CR. (Do not include any carry-

over credit on this line)

2) Enter the nonmember ratio of

electricity sales for the taxable

year

3) Multiply Line 1 by Line 2

This is the current year

credit amount

4) Enter Carryover Credit From Prior

Years. (Must be the prorated amount).

If first year, enter 0.

5) Add Lines 3 and 4. This is the Credit

Allowable This Year. Enter here and

on the appropriate line of the claimed

credit on Schedule 500CR.

The carryover amount for each credit should be computed in

the appropriate Part of Schedule 500CR.

Instructions For Preparing Form 500ec Virginia Cooperative Modified Net Income Tax Returns - 2016 Page 2