Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part II - Nonresident individuals › Section 12-711(b)-1 - Connecticut adjusted gross income derived from or connected with sources within this state

Current through July 10, 2024
(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.