Certain long-term capital gains can be deducted from your Virginia return. To report the long-term capital gain as a subtraction from income:
- Go to the State Section
- Subtractions from Income
- Other Subtractions
- Add Other Subtraction
- Select "Long Term Capital Gain"
The long-term capital gain must:
- Be due to an investment in a 'Qualified Business" as outlined in the Virginia tax code
- Be a technology business that has been approved by the Secretary of Technology
- Be based in Virginia
- Have less than $3 million in revenue