(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.
(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.
(June Sp. Sess. P.A. 91-3, S. 63, 168; May Sp. Sess. P.A. 92-5, S. 10, 37; May Sp. Sess. P.A. 16-3, S. 201.)
History: June Sp. Sess. P.A. 91-3, S. 63, effective August 22, 1991, and applicable to taxable years of taxpayers commencing on or after January 1, 1991; May Sp. Sess. P.A. 92-5 added Subsec. (d), effective June 19, 1992, and applicable to taxable years of taxpayers commencing January 1, 1992; May Sp. Sess. P.A. 16-3 amended Subsec. (a) by replacing references to regulations adopted by the commissioner with “in accordance”, effective January 1, 2017, and applicable to income years commencing on or after January 1, 2017.
Structure Connecticut General Statutes
Section 12-700. - Imposition of tax on income. Rate.
Section 12-700a. - Alternative minimum tax.
Section 12-700c. - Use tax table in personal income tax return form.
Section 12-701. - Definitions. Regulations.
Section 12-701a. - Subtraction for contributions to qualified state tuition program.
Section 12-702a. - Relief from joint tax liability.
Section 12-703. - Credits based on adjusted gross income.
Section 12-704. - Credits for income taxes paid to other states.
Section 12-704c. - Credits for taxes paid on primary residence or motor vehicle.
Section 12-704d. - Credits for angel investors.
Section 12-704e. - Earned income tax credit.
Section 12-704f. - Credit for certain college graduates.
Section 12-704h. - State child tax credit plan.
Section 12-704i. - Credit for birth of stillborn child.
Section 12-705. - Withholding of taxes from wages and other payments.
Section 12-708. - Determination of taxable year and method of accounting changes.
Section 12-711a. - Repayment of income by taxpayer.
Section 12-713. - Determination of income within this state of nonresident trusts and estates.
Section 12-715. - Determination of income of resident partner or S corporation shareholder.
Section 12-716. - Attribution of Connecticut fiduciary adjustment.
Section 12-718. - Exempt dividends.
Section 12-722a. - No accrual of interest on underpayment of tax created by public act 15-244*.
Section 12-724. - Special rules for members of the armed forces and specified terrorist victims.
Section 12-725. - Documents to be signed. Certification.
Section 12-728. - Deficiency assessments. Notice. Penalty.
Section 12-729. - Final assessment of deficiency. Protest. Notice of determination.
Section 12-729a. - Jeopardy assessment.
Section 12-731. - Understatement of tax due to mathematical error.
Section 12-733. - Limits on time for making of deficiency assessments.
Section 12-734. - Collection. Warrants. Liens. Foreclosure.
Section 12-737. - Penalties for wilful violations.
Section 12-738. - Penalty for false statement relating to withholding allowance.
Section 12-739. - Credit of overpayments.
Section 12-741. - Rules and rulings in lieu of regulations.
Section 12-743. - Contributions from refunds to special accounts.
Section 12-743a. - Contributions from refunds to the Military Relief Fund.
Section 12-745. - Order of credits.
Section 12-790b. - Written disclosure by tax preparer prior to providing tax preparation services.
Section 12-790c. - Denial, suspension or revocation of permit. Hearing.