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Great Question. You are correct. I would use the Federal K-1. Best Regards.
If you have any questions, let me know. Have a great day.
Hi. First, I would check with the previous accountant as to why he adjusted the income to -0-. However, it appears from the information provided, that the previous accountant did not include the partnership income on the California State 540 Form - just confirming, so I can give more detail in the answer.
I want to make sure we are talking about the personal income tax return for California.
All I am sure of - a California resident pays California income tax on all of his/her income, even if that income comes from outside of California. Hope this helps.
Here, for your reference, is the California Ruling # for this- [Cal. Rev. & Tax Code § 17041(a)].
I cannot give reasoning to why the previous accountant had an adjustment - it would be best to go back with him - he may have some additional facts about the partnership, that I do not have knowledge of. Above all, if you have any questions, let me know.
Correct. If he resided in Texas and had a business in Texas, then it would be no tax. Maybe, the accountant got confused with the states for some reason.
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