Discussion:Taxable Situs
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Discussion Forum Index --> Basic Tax Questions --> Taxable Situs
Discussion Forum Index --> Tax Questions --> Taxable Situs
| 14 May 2008 | |
| I was talking to a coworker today about situs, and he mentioned that if a taxpayer takes out a loan with a bank in CA and uses stock as collateral, then upon sale of that stock (after the stock is returned to him/her), the proceeds received from the sale will be sourced to the state of the bank (CA). Is this true? Can anyone help me find the source of his information? | |
| 14 May 2008 | |
| That's true only if the loan or other debt secured by the stock arises in connection with a California business, trade or profession. See 18 Cal. Code of Regs. Sec. 17952(c).
If the stock were pledged and held by the lender in California as security for a personal loan to a nonresident, it would not have a California business situs. | |
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