Iowa resident who is a partner (does not materially participate) in a California business. TP has ordinary business loss on California K-1 and no other California income. Does TP need to file a California non resident return with federal return attached that shows passive loss carryover?
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I have not checked CA filing requirements for non-resident partners BUT as a general rule I file non-resident tax returns anytime one of my clients receive any K-1 income from a source in a state that they don't claim to be their domicile state. I do so because many years back a NY client got audited because they failed to tell me that they received K-1 from a MA trust.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Have you read this?
https://www.ftb.ca.gov/file/personal...nresident.html
“Do I need to file?
As a nonresident, you pay tax on your taxable income from California sources.
Sourced income includes, but is not limited to:- Services performed in California
- Rent from real property located in California
- The sale or transfer of real California property
- Income from a California business, trade or profession“
also, see The Tax Book All States - CaliforniaLast edited by TAXNJ; 06-17-2020, 12:25 PM.Always cite your source for support to defend your opinionComment
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