Connecticut General Statutes 12-712 – Determination of nonresident partner’s, shareholder’s or beneficiary’s share of income within the state
(a)(1) The portion of a nonresident partner‘s distributive share of partnership income that is derived from or connected with sources within this state shall be determined in accordance with the provisions of section 12-711.
Terms Used In Connecticut General Statutes 12-712
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Commissioner: means the Commissioner of Revenue Services or his authorized agent. See Connecticut General Statutes 12-701
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- federal: refer to the corresponding terms defined in the laws of the United States. See Connecticut General Statutes 12-701
- Partner: means a partner as defined in Section 7701(a)(2) of the Internal Revenue Code and the regulations adopted thereunder, as from time to time amended, and any reference in this chapter or in regulations adopted under this chapter to a partner shall include a member of a limited liability company that is treated as a partnership for federal income tax purposes. See Connecticut General Statutes 12-701
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: means a partnership as defined in Section 7701(a)(2) of the Internal Revenue Code and the regulations adopted thereunder, as from time to time amended, and any reference in this chapter or in regulations adopted under this chapter to a partnership shall include a limited liability company that is treated as a partnership for federal income tax purposes. See Connecticut General Statutes 12-701
- S corporation: means any corporation which is an S corporation for federal income tax purposes. See Connecticut General Statutes 12-701
(2) The portion of a nonresident shareholder’s pro rata share of S corporation income that is derived from or connected with sources within this state shall be determined in accordance with the provisions of section 12-711.
(3) The portion of a nonresident beneficiary‘s share of trust or estate income that is derived from or connected with sources within this state shall be determined in accordance with the provisions of section 12-711.
(b) In determining the sources of a nonresident partner’s income, no effect shall be given to a provision in the partnership agreement which: (1) Characterizes payments to the partner as being for services or for the use of capital; or (2) allocates to the partner, as income or gain from sources without Connecticut, a greater proportion of his distributive share of partnership income or gain than the ratio of partnership income or gain from sources without this state to partnership income or gain from all sources, except as authorized in subsection (c) of this section; or (3) allocates to the partner a greater proportion of a partnership item of loss or deduction connected with sources within this state than his proportionate share, for federal income tax purposes, of partnership loss or deduction generally, except as authorized in subsection (c) of this section.
(c) (1) The character of partnership or corporation items for a nonresident partner or S corporation shareholder shall be determined in accordance with section 12-715.
(2) The effect of a special provision in a partnership agreement, other than a provision referred to in subsection (b) of this section, having the principal purpose of avoidance or evasion of tax under this chapter shall be determined under subsection (c) of section 12-715.
(d) The commissioner may, on application, authorize the use of such other methods of determining a nonresident partner’s portion of partnership items derived from or connected with sources within this state, and the modifications related thereto, as may be appropriate and equitable, on such terms and conditions as he may require.