Conn. Agencies Regs. § 12-711(b)-1

Current through June 15, 2024

Section 12-711(b)-1 - Connecticut adjusted gross income derived from or connected with sources within this state

(a) Connecticut adjusted gross income of a nonresident individual derived from or connected with sources within this state is that portion of Connecticut adjusted gross income that is derived from or connected with Connecticut sources. In addition to the items of income, gain, loss and deduction realized directly by a nonresident individual, it includes such individual's distributive share of partnership income, gain, loss and deduction (see Part VII), his or her pro rata share of S corporation income, gain, loss and deduction (see Part VII) and his or her share of trust or estate income, gain, loss and deduction (see Part IV), to the extent derived from or connected with Connecticut sources.

Example: During 1992, taxpayer N, a nonresident individual, was paid a salary of $10,000 by his employer, which is headquartered in Massachusetts. N's salary paychecks are drawn on a Massachusetts bank. Eighty percent of N's working days were properly considered days worked within Connecticut. N is also a partner in a partnership carrying on business as a manufacturer's representative both within and without Connecticut. N's distributive share as a partner of the partnership income was $35,000. Seventy percent of the income of the partnership was properly allocated to Connecticut. N received $3,000 in net rental income from a Springfield, Massachusetts apartment house that N owns. N also received a share as a beneficiary of a trust under the will of his father. Income of the trust consisted of $4,000 in net rentals from a Hartford medical office building and $6,000 in dividends from a Connecticut corporation. N's share as a 50% beneficiary of this trust was $5,000.

The portion of N's salary that was derived from or connected with Connecticut sources is $8,000, determined on the basis of an allocation of days worked in and out of Connecticut and not by where payment was made (see § 12-711(c)-5 of this Part). N's share of the partnership income which is sourced to Connecticut is $24,500, determined on the basis of the partnership's 70% allocation (see Part VII). The income from the Massachusetts apartment house is not included in Connecticut adjusted gross income derived from or connected with sources within Connecticut (see § 12-711(b)-3 of this Part). N's share of the income from the trust that is derived from or connected with sources within Connecticut is limited to $2,000, his 50% share of Connecticut rental income, because dividends are income from intangibles that are generally not considered to be derived from or connected with Connecticut sources for a nonresident (see § 12-713(a)-4 of Part IV and § 12-711(b)-5 of this Part).

	Connecticut adjusted gross income		Connecticut adjusted gross income derived from or connected with Connecticut sources
Salary	$10,000		$ 8,000
Partnership share	35,000		24,500
Mass. rental income	3,000		0
Trust share:
	Conn. rental income	$2,000
	Dividends	$3,000
	$ 5,000		2,000
Total	$53,000		$34,500

(b) While this section pertains to Section 12-711(b) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-701(c) of the general statutes.

Conn. Agencies Regs. § 12-711(b)-1

Effective November 18, 1994