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SCHEDULE NR

Schedule NR must be completed for all non-resident estates and trusts, including the Qualified Funeral Trust (QFT) having items of income, gain or

deduction derived from West Virginia sources. Schedule NR is designed to conform to the federal fiduciary or QFT return. Column I must be

completed regardless of the source of income, gain or deduction. These figures are taken directly from Federal Form 1041 or 1041-QFT. In column

II, enter the amount which is attributable to or connected with West Virginia sources. Because of the conformity of all amounts in column I of

Schedule NR to the federal return, the instructions for the federal return are equally applicable here. The instructions below relate only to column II,

to be used by non-resident estates and trusts, including the QFT, for allocation of income and deductions to West Virginia and for determining the

West Virginia income distribution deduction and West Virginia taxable income. Please Note that in case of a trust, the federal income used in the

calculation of the income percentage (Line 24) must be increased by the amount of any gain, reduced by any deductions, upon which tax is imposed

under § 644 of the Internal Revenue Code.

INSTRUCTIONS FOR COLUMN II

Enter that amount which is attributable to West Virginia only

Lines 1 and 2 (Include the QFT) - Interest and dividends:

Line 14 (Include the QFT) - Attorney, accountant, and return

preparer fees: Enter the deductible fees paid by the estate or trust

Interest and dividends should be allocated to West Virginia only to

the extent that such income is from property employed in a

during the tax year that are connected with West Virginia.

business, trade, profession or occupation carried on in this State

Line 15 (Estate or Trust filing a 1041) - Other deductions: Enter

Line 3 -Business income or loss: Enter the amount of gross profit

the total amount of all other expenses authorized by law and

or loss from any trade, business or profession carried on within

allocated to West Virginia. These expenses must be connected with

West Virginia. If separate accounting is not maintained for the

income previously allocated to West Virginia.

Additional

West Virginia business, income derived from business carried on

instructions for QFT filers: Other deductions not subject to the

both within and outside of the State must be allocated by a fair and

2% Floor: Enter the total amount of all other expenses authorized

equitable method; and such method of allocation must be explained

by law and allocated to West Virginia. These expenses must be

by a separate statement attached to the return

connected with income previously allocated to West Virginia.

Allowable miscellaneous deductions subject to the 2% Floor: Enter

Line 4 (Include the QFT) - Capital gain or loss: Enter the net

the amount of the allowable miscellaneous deductions subject to the

amount of gains or losses from capital assets. The net gains or

2% Floor. These deductions must be connected with income

losses allocable to West Virginia are those from the sale or

previously allocated to West Virginia

exchange of property having a situs within the State

Line 16 - Total - of lines 10 through 15

Line 5 - Rents, royalties, partnerships, other estates and trusts:

Enter the amount of gross rents and royalties received from real or

Line 17 - Adjusted total income or loss

(line 9 minus Line 16).

tangible personal property having a situs in West Virginia. Also,

Line 18 - Income distribution deduction: In order to establish the

enter the amount of income from partnerships and other fiduciaries.

West Virginia allocation percentage, divide the amount on line 17,

This would be the proportionate share of income from a resident

column II by the amount on line 17, column I. Multiply the West

partnership, estate or trust, or from the West Virginia portion of a

non-resident partnership, estate or trust

Virginia percentage by amount on line 18, column I and enter the

Line 7 - Ordinary gain or loss: Enter the amount of gain or loss

product in col. II. This amount will be your West Virginia

from the sale or exchange of property other than capital assets and

distribution deduction.

also from involuntary conversions (other than casualty or theft)

Line 19 - Federal exemption: Enter the amount of the federal

Line 8 - Other income: Enter the total amount of other income

exemption from Form 1041, in both column I and column II (this

which is allocated to West Virginia and not specifically mentioned

amount need not be allocated).

above

Line 20 - Total deductions (sum of lines 18 and 19).

Line 9 - Total income: Add lines 1 through 8

Line 21 - Taxable income of Fiduciary

(line 17 minus Line 20).

Line 10 - Interest: Enter the total amount of interest expense

allocated to West Virginia. Interest is only allocated to the extent to

Part II - Calculation of West Virginia Tax

which it can be related to items of income allocated to West

Virginia

Line 22 - WV Taxable Income - enter amount from page 1, line 4.

Line 11 (Include the QFT) - Taxes: Enter the amount of taxes

Line 23 - Tentative Tax - apply rate schedule to line 22 (see rate

allocated to West Virginia. Taxes are allocated to the extent such

schedule on page 9).

are connected with the operation of a business or property having a

Line 24 - Income Percentage- If Federal Taxable Income of

situs within the State

Fiduciary (line 21, column I) is less than or equal to zero, the

Line 12 (Include the QFT) - Fiduciary/Trustee fees: Enter the

income percentage is set to 0.0000. Otherwise, WV Taxable

deductible fees paid to the fiduciary for administering the estate,

Income of Fiduciary (line 21, column II) divided by Federal

trust or QFT during the tax year that are connected to West

), not to exceed

Taxable Income of Fiduciary (line 21, column I)

Virginia. Note: Fiduciary/Trustee fees deducted on Federal Form

100%.

706 cannot be deducted on this form.

Line 25 - West Virginia

Tax(line 23 times Line 24)

Enter result on

Line 13 - Charitable deduction: Charitable contributions can be

page 1, line 5.

allocated to the extent they are made to West Virginia charities or

are gifts to the State or any political subdivision of the State.

- 9 -

Form It-141 - West Virginia Fiduciary Income Tax Return (For Resident And Non-Resident Estates And Trusts) - 2011 Page 9

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