Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part VII - Partnerships and S corporations › Section 12-715(a)-1 - Modification of partnership items in partner's income tax return

Current through July 10, 2024
(a) In determining the Connecticut adjusted
				gross income of a resident partner, any of the modifications referred to in
				§§
									12-701(a)(20)-2
				and
				12-701(a)(20)-3
				of Part I that relate to a partnership item of income, gain, loss or deduction
				shall be made with respect to the distributive share of the partner in such
				item as determined for federal income tax purposes. Such modification, if
				applicable, shall be made regardless of whether, in the partner's federal
				income tax return, the partnership item is reflected in such partner's
				distributive share of partnership taxable income or loss reported in accordance
				with section 702(a)(8) of the Internal Revenue Code or is one of the items
				separately reported under the other subparagraphs of such section
				702(a).
(b) In determining
				Connecticut adjusted gross income, a resident partner shall combine the
				modifications relating to such partner's share of any partnership item with the
				modification relating to any similar item from sources other than the
				partnership. For example, if some of the partnership income is derived from
				interest on bonds of another state, not subject to federal income tax, and if
				the individual income of a resident partner also includes similar bond
				interest, such partner shall add to federal adjusted gross income both the
				distributive share of the partnership income from such bonds and the interest
				from similar bonds that such partner received individually rather than from the
				partnership.
(c) The amount of any
				modification to be made by a partner with respect to a partnership item of
				income, gain, loss or deduction is to be determined as follows:
(1) If a modification relates to any item
				subject to special allocation among the partners under the partnership
				agreement, which item is therefore accounted for separately for federal income
				tax purposes, the amount of each partner's share of the modification is
				determined by such partner's distributive share of such item for federal income
				tax purposes.
(2) If a modification
				relates to an item that is included in computing the partnership's taxable
				income or loss generally (i.e., that portion of federal adjusted gross income
				described in section 702(a)(8) of the Internal Revenue Code), other than an
				item subject to a special allocation among the partners under the partnership
				agreement that differs from the allocation of partnership taxable income or
				loss generally, each partner's modification relating to that item is determined
				by such partner's distributive share for federal income tax purposes of the
				taxable income or loss of the partnership required to be reported in accordance
				with said section 702(a)(8).
(3) If
				a modification relates to an item that is not taken into account for federal
				income tax purposes (such as interest income on bonds of other states) and such
				item is not one which is subject to a special allocation among the partners
				under the partnership agreement that differs from the allocation of partnership
				taxable income or loss generally, each partner's modification in respect to
				such an item is determined by such partner's distributive share for federal
				income tax purposes of the taxable income or loss of the partnership described
				in section 702(a)(8) of the Internal Revenue Code.
(4) If a modification relates to an item that
				is not taken into account for federal income tax purposes (such as interest
				income on bonds of other states) and such item is one which is subject to a
				special allocation among the partners under the partnership agreement that
				differs from the allocation of partnership taxable income or loss generally,
				each partner's modification in respect to such an item is determined by the
				allocation provided for in the partnership agreement.