DRS: 12-711(b)-01, Connecticut adjusted gross income derived from or connected with sources within this state

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications, 111 Phoenix Avenue, Enfield, CT 06082,  colp@jud.state.ct.us. Copies of DRS forms and publications are available at http://www.ct.gov/drs

Connecticut Regulation, Reg. Sec. 12-711(b)-1. Connecticut adjusted gross income derived from or connected with sources within this state.

(a) Connecticut adjusted gross income of a nonresident individual derived from or connected with sources within this state is that portion of Connecticut adjusted gross income that is derived from or connected with Connecticut sources. In addition to the items of income, gain, loss and deduction realized directly by a nonresident individual, it includes such individualís distributive share of partnership income, gain, loss and  deduction (see Part VII), his or her pro rata share of S corporation income, gain, loss and deduction (see Part VII) and his or her share of trust or estate income, gain, loss and deduction (see Part IV), to the extent derived from or connected with Connecticut sources.

Example: During 1992, taxpayer N, a nonresident individual, was paid a salary of $10,000 by his employer, which is headquartered in Massachusetts. Nís salary paychecks are drawn on a Massachusetts bank. Eighty percent of Nís working days were properly considered days worked within Connecticut. N is also a partner in a partnership carrying on business as a manufacturerís representative both within and without Connecticut. Nís distributive share as a partner of the partnership income was $35,000. Seventy percent of the income of the partnership was properly allocated to Connecticut. N received $3,000 in net rental income from a Springfield, Massachusetts apartment house that N owns. N also received a share as a beneficiary of a trust under the will of his father. Income of the trust consisted of $4,000 in net rentals from a Hartford medical office building and $6,000 in dividends from a Connecticut corporation. Nís share as a 50% beneficiary of this trust was $5,000.

The portion of Nís salary that was derived from or connected with Connecticut sources is $8,000, determined on the basis of an allocation of days worked in and out of Connecticut and not by where payment was made (see ß12-711(c)-5 of this Part). Nís share of the partnership income which is sourced to Connecticut is $24,500, determined on the basis of the partnershipís 70% allocation (see Part VII). The income from the Massachusetts apartment house is not included in Connecticut adjusted gross income derived from or connected with sources within Connecticut (see ß12-711(b)-3 of this Part). Nís share of the income from the trust that is derived from or connected with sources within Connecticut is limited to $2,000, his 50% share of Connecticut rental income, because dividends are income from intangibles that are generally not considered to be derived from or connected with Connecticut sources for a nonresident (see ß12-713(a)-4 of Part IV and ß12-711(b)-5 of this Part).

Connecticut
adjusted gross income

Connecticut adjusted gross income derived from or connected with Connecticut sources

Salary $ 10,000 $ 8,000
Partnership share 35,000 24,500
Mass. rental income 3,000 0
Trust share:
Conn. rental income
Dividends

$2,000
$3,000
$ 5,000 2,000
Total 53,000 $34,500

(b) While this section pertains to Section 12-711(b) 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)