2018 and before I have a client who has taken over Dad's business(he own's 25%) S Corp and started a new S corp which he owns 95% both operating out of the mid-west state no nexus anywhere but here. He travels a lot some for business but more pleasure. In his 30s he told me the place he rents for his home (second floor) here is not going to be available this fall and he really is thinking of renting in New York, and nothing here. Next his girl friend lives and works in California and says they will probably get married and he will make California his home in 2020, but keep the rental in NYC. In addition to the above he is a passive investor in 4 other partnerships, that two do have and required reporting in NY. His income is from the two mid-western businesses.
2019 - does he become a part year resident in NY? He says he will spend more time in the mid-west, but a lot of his work for the businesses here can be done from electronic sources.
2020 - his description of residency is probably 90 days mid-west, 90 days NYC and 90 days CA - the rest he says will be vacationing with wife, a Doctor.
The flagship base in the mid-west is 90% of his income now($800,000 -80% W-2) and sells medical equipment. They currently have no nexus in CA or NY or any State other than here. How does the W-2 get allocated, and nexus with rental so income proration on income from the S's?
Any help or ideas would be appreciated. Thanks