Discussion:Multi stat allocation

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Revision as of 18:29, 10 October 2009
KatieJ (Talk | contribs)
(Note that if Ohi)
← Previous diff		 Revision as of 14:28, 11 October 2009
Southparkcpa (Talk | contribs)
(Thank you Katie)
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{{ForumReplyPost|UserID=KatieJ|Date=10 October 2009|Text=Note that if Ohio gross rental receipts total $150,000 or more, the client is also subject to the Ohio Commercial Activity Tax (a gross receipts tax). }} {{ForumReplyPost|UserID=KatieJ|Date=10 October 2009|Text=Note that if Ohio gross rental receipts total $150,000 or more, the client is also subject to the Ohio Commercial Activity Tax (a gross receipts tax). }}
 +
 +{{ForumReplyPost|UserID=Southparkcpa|Date=11 October 2009|Text=Thank you Katie
 +
 +Rents were slightly less than 150K.
 +
 +Interesting that Starbucks paid 2 years rent at exit.
 +
 +No attempt at negotition etc.... my client would have accepted 30K or so to let them out of the lease but they just paid it IN FULL.}}

Revision as of 14:28, 11 October 2009

Discussion Forum Index --> Advanced Tax Questions --> Multi stat allocation
Discussion Forum Index --> Tax Questions --> Multi stat allocation

Southparkcpa (talk|edits) said:

9 October 2009
I have a client that rented a building to Starbucks. Starbucks left and paid him 100K in advanced rent (OHIO SOURCE).

He also has an active S corp with a loss in NY (fully deductible with basis)over 100K so the schedule E basically nets to zero... to simplify it for this discussion.

My initial recation was that he owes tax in OHIO but as I go through the OHIO return I am not so sure.

My gut tells me that the NY active business loss cannot offset the OHIO passive income but the OHIO instructions lead you to believe that is what they expect.

The instructions are not clear and it is late on a Friday.

Any help would be greatly appreciated.

Thanks!

Southparkcpa (talk|edits) said:

10 October 2009
I got it.... needed a good nights rest.

No apportionment for rental income, clearly calls for allocation and not apportionment for non earned income.

KatieJ (talk|edits) said:

10 October 2009
Note that if Ohio gross rental receipts total $150,000 or more, the client is also subject to the Ohio Commercial Activity Tax (a gross receipts tax).

Southparkcpa (talk|edits) said:

11 October 2009
Thank you Katie

Rents were slightly less than 150K.

Interesting that Starbucks paid 2 years rent at exit.

No attempt at negotition etc.... my client would have accepted 30K or so to let them out of the lease but they just paid it IN FULL.

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