Is it CA Income?

[Jill Graff]

Taxpayer is a Texas resident. All of her work is done in Texas. She is an artist (painter). A gallery in California had a showing of some of her work and sold $12k worth. The taxpayer did not attend. Taxpayer received a 1099-MISC from the gallery. Is a California tax return required?

Thanks in advance.

[MAW TAX]

Probably not

Hi, Jill.
I do not believe this person needs to do a CA tax return if her main home is in TX and she consigns her art to a shop which sells her product in CA. The shop would report the full sale, collect sales tax, and deduct the cost of the product sold, which is the 12,000 wholesale income to your client. Of course I always have to look up the rules to make sure what I believe is correct. I would caution you to do the same. You can go to the www.ca.gov website and find out more about it.

Best of Luck!
MAW

[taxea]

The item was sold in CA..it's CA income. taxea

[Anarchrist]

If she doesn't have nexus in CA she doesn't have to file a CA tax return. Just like we don't file a CA tax return showing income earned from our CA clients if we don't have nexus in the state.

[JSLATER]

From the CA Franchise Tax Board:

I did not live in California. Do I have to file a return?
You are required to file a Nonresident or Part-Year Resident Income Tax Return (Long of Short Form 540NR) with California if you have income from California sources, such as, rental income, income from the sale of property, or partnership income in 2008 and you are:

Single with a total income from all sources of $14,845 or more
Married with joint income from all sources of $29,690 or more.

[RLymanC]

CA & Texas

an addition to the above, since TX has no state taxes, all of CA source income will be taxed by CA, no credit for other state taxes.