DRS: 12-704(a)-4, Definitions - Amended Effective 6/29/01 and again effective 1/1/03)

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Amended Effective 1/1/03
Old Version A Effective prior to 6/29/01
Old Version B Effective prior to 1/1/03
 

Conn. Agencies Regs. 12-704(a)-4.  Definitions.  

(a) As used in this Part, unless the context otherwise requires:

(1) ''Connecticut tax liability'' means the Connecticut income tax determined pursuant to chapter 229, after subtracting any personal credit allowable under Section 12-703 of the general statutes, but before subtracting the credit for taxes paid to other qualifying jurisdictions allowable under Section 12-704 of the general statutes and the regulations of this Part, but does not include any net Connecticut minimum tax, as defined in section 12-701 of the General Statutes.

(2) ''Income tax paid to a qualifying jurisdiction'' means the lesser of (i) the income tax (other than an alternative minimum tax that is similar to that imposed under section 12-700a of the General Statutes) that is actually due to a qualifying jurisdiction for the taxable year, exclusive of any interest and penalties, or (ii) the income tax (other than an alternative minimum tax that is similar to that imposed under section 12-700a of the General Statutes) that is actually paid thereto for the taxable year, exclusive of any penalties or interest.

(3) ''Income derived from or connected with sources within a qualifying jurisdiction'' is to be construed so as to accord with the definition of the term ''derived from or connected with sources within this state'' set forth in Part II in relation to the adjusted gross income of a nonresident individual.  Thus, the credit against Connecticut income tax is allowed for income tax imposed by another jurisdiction upon compensation for personal services performed in the other jurisdiction, income from a business, trade or profession carried on in the other jurisdiction, and income from real or tangible personal property situated in the other jurisdiction.  On the other hand, the credit is not allowed for tax imposed by another jurisdiction upon income from intangibles, except where such income is from property employed in a business, trade or profession carried on in the other jurisdiction.  For example, no credit is allowed for an income tax of another jurisdiction on dividend income not derived from property employed in a business, trade or profession carried on in such jurisdiction.

(4) ''Qualifying jurisdiction'' means a state of the United States, a political subdivision of such a state, or the District of Columbia, but does not mean the United States or any other nation or political subdivision of any other nation.

Amended effective July 3, 2003 and applicable to taxable years commencing on and after January 1, 2003.