DRS: 12-700(c)-2, Part-year resident trusts

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Conn. Agencies Regs. ß 12-700(c)-2. Part-year resident trusts.

(a) Where the resident status of a trust is changed from resident to nonresident or from nonresident to resident (see ß12-701(a)(6)-1 of this Part), its tentative Connecticut income tax is computed in the same manner as a resident trust, except that, if the trust is required to accrue items under Section 12-717(c)(1) or (2) of the general statutes, those items, in accordance with this section, are added to or subtracted from, as the case may be, its Connecticut taxable income before the computation of its tentative Connecticut income tax liability as if it were a resident trust. Thus, the modification to federal taxable income that are made by a resident trust in determining Connecticut taxable income are also made by a part-year resident trust, but the Connecticut taxable income of a part-year resident trust (1) the resident status of which has changed from resident to nonresident is increased or decreased, as the case may be, by the items accrued under Section 12-717(c)(1) of the general statutes, to the extent not otherwise includible in Connecticut taxable income for the taxable year and (2) the resident status of which has changed from nonresident to resident is decreased or increased, as the case may be, by the items accrued under Section 12-717(c)(2) of the general statutes, to the extent included in Connecticut taxable income for the taxable year. Then, after Connecticut taxable income is so increased or decreased, the tax rate is applied, resulting in a tentative tax. The tentative tax is then multiplied by a fraction, the numerator of which is the part-year resident trustís Connecticut taxable income derived from or connected with sources within this state (see ß12-727(b)-1 of this Part) and the denominator of which is such trustís Connecticut taxable income from all sources, as increased or decreased under this subsection.

(b) In cases where a part-year resident trustís Connecticut taxable income from sources everywhere, as increased or decreased under subsection (a) of this section, is less than its Connecticut taxable income derived from or connected with sources within this state, the part-year resident trustís income tax liability is based on its Connecticut taxable income derived from or connected with sources within Connecticut.

(c) While this section pertains to Section 12-700(c) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.

(Effective November 18, 1994.)