DRS: 12-717(c)(2)-1, Special accruals: change from nonresident to resident

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Connecticut Regulation, Reg. Sec. 12-717(c)(2)-1. Special accruals: change from nonresident to resident.

(a) Where the resident status of an individual changes from nonresident to resident, such individual shall, regardless of the method of accounting normally employed, accrue to the portion of the year prior to such change any items of income, gain, loss or deduction accruing prior to the change of resident status, other than those items of income, gain, loss or deduction which are derived from or connected with Connecticut sources, if not otherwise properly includible (whether or not the installment method is used) or allowable for federal income tax purposes for such portion of the taxable year or for a prior taxable year. For example, a dividend with a record date prior to the change of residence shall be accrued to the period prior to the change of residence, even though it is not actually paid until after the change of residence has occurred. The amounts of accrued items of an individual are determined, with the applicable modifications required by §§12-701(a)(20)-2 and 12-701(a)(20)-3 of Part I, as if such accrued items were includible or allowable for federal income tax purposes.

(b) The provisions of this section also apply to part-year resident trusts, and wherever reference is made in this section to a part-year resident individual, such reference shall be construed to include a part-year resident trust, and any reference to modifications required to an individual’s Connecticut adjusted gross income by §§12-701(a)(20)-2 and 12-701(a)(20)-3 of Part I shall be construed to mean modifications required to a trust’s Connecticut taxable income by §§12-701(a)(10)-2 and 12-701(a)(10)-3 of Part IV.

(c) While this section pertains to Section 12-717(c)(2) 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 12-701(c) of the general statutes.

(Effective 11/18/1994)