2-Nov-2015 4:27pm
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2-Nov-2015 6:12pm
DesertRat wrote:Is a California form 592-B determinative that the reported income is California source income?
3-Nov-2015 8:49am
3-Nov-2015 9:55am
3-Nov-2015 10:21am
Nightsnorkeler wrote:when our IL corporation pays a NC independent contractor for work that benefits a CA client, that income is sourced to CA and we withhold CA income tax
3-Nov-2015 12:33pm
3-Nov-2015 1:06pm
WEISSEA wrote:to be CA source income the services have to be performed in CA(physically present days in CA)
3-Nov-2015 2:48pm
4Seasons wrote: I say it's about time them non-resident freeloaders pay their fair share for taking advantage of the vibrant California marketplace maintained at such a high regulatory cost.
3-Nov-2015 3:18pm
DaveFogel wrote:Nightsnorkeler, you might be correct, but more information is needed. Effective January 1, 2011, California adopted market based sourcing rules by regulation.
3-Nov-2015 4:04pm
3-Nov-2015 4:53pm
3-Nov-2015 5:32pm
3-Nov-2015 8:15pm
DesertRat wrote:It appears to me that this income is California sourced income
3-Nov-2015 10:54pm
Jill, a nonresident of California, owns a web design business that she holds as a sole proprietorship. She works from her home out of state but has customers in various states including California. For the 2013 taxable year, Jill's sales receipts from California customers are $300,000 out of the total sales receipts everywhere of $1,000,000. Does Jill have a filing requirement in California?
Yes, nonresident individuals are taxed on all California source income. Jill's sole proprietorship is carrying on a business in and out of California and will be required to apportion its income to California using UDITPA rules. Under market assignment, sales of services are assigned to California if the purchaser of the service received the benefit of the service in California. Accordingly, $300,000 will be assigned to the California sales factor numerator for Jill's sole proprietorship and Jill would apportion 30% ($300,000 CA sales/$1,000,000 total sales) of its business income from her sole proprietorship to California.
3-Nov-2015 11:53pm
DaveFogel wrote:the example with Jill is where Jill's sole proprietorship conducts business in several states, which seems quite different from OP's client, who only conducted her business in one state (Arizona)
4-Nov-2015 9:51am
4Seasons wrote:Apparently, according to the information forms issued, her California customer does not agree. She conducted business in California if she sold some service or product to a customer within the state. From there it is a question of the threshholds.
4-Nov-2015 3:31pm
DaveFogel wrote:you're saying that the fact that the California company issued her a Form 592-B is dispositive of the issue of whether the 1099-MISC income was California sourced
4-Nov-2015 8:27pm
4Seasons wrote:Post #16 seems to be saying that if California customers provided 100% of the worker's income it would not be sourced to California