Conn. Agencies Regs. § 12-717-3 - Part-year residents: income or loss from business, trade, profession or occupation
(a) Where the
federal income tax return of an individual for a taxable year in which a change
of resident status occurs includes net income or net loss from the operation of
a business, trade, profession or occupation (as distinguished from personal
services rendered as an employee), a separate computation of the business net
income or net loss shall be made with respect to each portion of the year in
which the change of residence occurred. If it is not practicable to compute
separate amounts of business net income or net loss attributable to such
portions of the taxable year, the amount reportable on the federal income tax
return for the entire taxable year may be allocated to the portion prior to and
the portion subsequent to the change of residence on the basis of the federal
gross income or gross receipts of the business, trade, profession or occupation
attributable to each portion, provided that the results of such allocation are
consistent with the business or professional activities actually carried on
during the taxable year. The amount computed in accordance with this subsection
is subject to the provisions of this Part regarding special accruals, to the
extent such accruals relate to the conduct of the business, trade, profession
or occupation.
(b) The provisions
of this section also apply to part-year resident trusts, and wherever reference
is made in this section to a part-year resident individual carrying on a
business, trade, profession or occupation, such reference shall be construed to
include a part-year resident trust carrying on a business, trade, profession or
occupation.
(c) While this section
pertains to Section
12-717
of the general statutes, for purposes of supplementary interpretation, as the
phrase is used in Section
12-2
of the general statutes, the adoption of this section is authorized by Section
12-711(c)
of the general statutes.
Notes
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