Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part III - Part-year Resident individuals & trusts › Section 12-717(c)(3)-1 - Accrued items not to be included in subsequent taxable periods

Current through July 10, 2024
(a) No items of income, gain, loss or
				deduction accrued under this section by a part-year resident individual for the
				portion of the taxable year prior to a change of resident status are to be
				taken into account in determining the Connecticut adjusted gross income of the
				individual (or, with respect to the same items of income, gain, loss or
				deduction, any other individual) for any subsequent taxable period.
(b) The provisions of this section also apply
				to part-year resident trusts, and wherever reference is made in this section to
				a part-year resident individual, such reference shall be construed to include a
				part-year resident trust, and any reference to an individual's Connecticut
				adjusted gross income shall be construed to mean a trust's Connecticut taxable
				income.
(c) Example:
F, a resident of California, who, for federal income tax
				  purposes, uses the cash receipts and disbursements method of accounting and
				  uses the calendar year as her accounting period, performs services as an
				  employee in California in July 1993, for which she is paid $10,000 in September
				  1993. F also owns Connecticut real estate which she leases for $500 per month.
				  The rent is paid to her for the first four months of 1993 but no rent is paid
				  from May 1, 1993 to December 31, 1993, when all arrears are paid up. The
				  taxpayer, away from home on business in July, has travel expenses of $1,000
				  which were billed to her on August 1, 1993.
On August 10, 1993, F moves to Connecticut where, on
				  September 1, 1993, she receives the $10,000 payable for her services performed
				  in California and pays the travel expense bill. She has no other income or
				  deduction for the year 1993.
F shall file a Connecticut part-year resident income tax
				  return for 1993. The $10,000 compensation and the $1,000 travel expenses are
				  accrued as of the change of residence, and are not includible or allowable in
				  computing F's Connecticut adjusted gross income during the residency portion of
				  the taxable year because they accrued prior to the change of residence and are
				  not derived from or connected with Connecticut sources. The rental payments
				  from Connecticut real estate remaining unpaid as of the change of residence are
				  not accrued because they are derived from Connecticut sources (see §
										12-717(c)(2)-1
				  of this Part). Accordingly, on her 1993 Connecticut part-year resident income
				  tax return, F shall include in her Connecticut adjusted gross income derived
				  from or connected with Connecticut sources during the nonresidency portion of
				  the taxable year the $2,000 rent from the Connecticut real estate actually
				  received during this period. She shall include in her Connecticut adjusted
				  gross income during the residency portion of the taxable year the balance of
				  the rent ($4,000) received after her change of residence, but not the amount
				  received for her services in California or the related travel expenses, which
				  were accrued as of her change of residence to the nonresidency portion of the
				  taxable year.
(c) While
				this section pertains to Section
				12-717(c)(3)
				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.