Multi-state Taxation Of Flow-Through Entities

Description

Focus on the state taxation of  flow-through entities and look at the computation of the income tax base and rate structure. Discuss all types of flow-through entities including LLCs/partnerships, S corporations and trusts.

Plus, explore the "doing business" concept and how it applies to flow-through entities that are organized outside the state. Attendees will analyze how the income flows through to the partner, shareholder or member, and when the owner is deemed to be doing business in the state; look at the states that offer (and those that require) the filing of a composite tax return; dissect the requirements that apply to filing this unique tax return; and gain a full understanding regarding utilization of credits by both the multi-state entity and their owners. Learn about the tax treatment when the owner of a business moves out of state.  Become familiar with the state complexities of selling a business. 

Highlights

• Taxation of flow-through entities and trusts in a multistate environment.
• Nexus standards for flow-through entities.
• Apportionment formulas for flow-through entities and their owners.
• Sourcing rules that apply for apportionment purposes.
• Composite returns and how they can benefit your clients.
• Withholding on distributions versus withholding on income allocation.

Objectives

• Identify how California and other states tax flow-through entities and how these assessments are computed.
• Determine when the entity and their owners are doing business in the state.
• Recognize how to apportion the tax base at both the entity and the owner level.
• Review special apportionment rules that apply to the undistributed income of a trust.
• Identify when, where and how to file a composite return.
• Determine the penalty assessments imposed on these complex structures.
• Identify new state developments.

Designed For

CPAs, attorneys, tax practitioners and tax advisers.