Mathy v. Com. Dept. of Taxation

In this appeal, we consider whether two Virginia taxpayers are entitled to a credit under Code §58.1-332(A) for taxes paid to the District of Columbia on income received from a partnership conducted in the District of Columbia.

The facts in this case are not in dispute. The appellants, Joseph J. Mathy and Sarah G. Mathy, are residents of Fairfax County. Joseph Mathy is a general partner in The Mills Building Associates, a District of Columbia general partnership (the partnership). The partnership’s sole source of income during the relevant years was rental income earned from the operation of…