Question
I have been a resident of Texas for 6 years, but a 50% partner in a CA-based LLC. Midway through the year, I sold my share in the company to my partner on an installment basis. It is a service-based company with no real estate. I need to file a CA non-resident return for my business income (K1) for the portion of the year that I still owned the company. But do I need to add the capital gains on the sale in column E of Schedule CA (540NR)? Some sources on the internet suggest that the sale of an intangible property is considered income tied to the residence of the seller. Others suggest CA considers anything they could possibly tax as CA-sourced income. I'm unsure on what options to tick in Turbotax.
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