California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 2.5 - Personal Income Tax (Taxable Years Beginning After 12-31-54) › Subchapter 11 - Gross Income of Nonresidents › Section 17951-1 - * Gross Income of Nonresidents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Nonresidents of the State are taxable
				  only upon taxable income derived from sources within this State (Revenue and
				  Taxation Code section
				  17041,
				  subdivision (b)), and, accordingly, are required to include in gross income in
				  making their returns only that portion of their gross income which is relevant
				  in determining the amount of taxable income derived from source within this
				  State. (For definition of nonresident, see Revenue and Taxation Code sections
				  17014
				  through
				  17016
				  and the regulations issued thereunder). For meaning of income from sources
				  within this State, see Reg. 17951-2.
(b) The gross income of a nonresident of the
				  State who is a member of a partnership, pool or syndicate includes, in addition
				  to any other income from sources within this State, the member's distributive
				  share of the taxable income of the partnership, pool or syndicate to the extent
				  that the member's distributive share is derived from sources within this State.
				  Amounts received from a partnership by a nonresident partner as payments for
				  services or use of capital, constitute gross income of a nonresident. (See Reg.
				  17951-4).
(c) A nonresident
				  beneficiary of an estate or trust must include in gross income, income from the
				  estate or trust which is deductible by the estate or trust and which is derived
				  from sources within this State. (For computation of income of estates and
				  trusts, deductible income, etc., see Chapter 9 (Sec.
				  17731 and following)). However,
				  qualified retirement income, as defined in Revenue and Taxation Code section
				  17952.5,
				  received by a nonresident beneficiary of an estate or trust during a taxable
				  year beginning on or after January 1, 1996, is not included in gross income
				  derived from sources within this State.
1. Group 11
					 (Regs. 17951-17954(a) through 17951-17954(f)) filed 5-3-61; effective thirtieth
					 day thereafter (Register 61, No. 9).
2. Renumbering and amendment of
					 Sections 17951-17954(a) to
					 Section 17951-1 filed 1-15-82; effective
					 thirtieth day thereafter (Register 82, No. 3).
3. Change without
					 regulatory effect amending subsection (c) and NOTE filed 7-28-97 pursuant to
					 section 100, title 1, California Code of
					 Regulations (Register 97, No. 31).
4. Change without regulatory
					 effect amending section and NOTE filed 12-10-2002 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2002, No. 50).
*
					 This regulation is similar to Title 18, Cal. Adm. Code, Chapter 3, Subchapter
					 2, Section
					 17211-14(a).
Note: Authority cited: Section
						19503,
						Revenue and Taxation Code. Reference: Sections
						17041,
						17951
						and
						17952,
						Revenue and Taxation Code.