I relocated to Colorado 18 months ago. My Hawaii Real Estate S-Corp (wife and I sole shareholders) received its only 2016 commission in December (paying 4% Hawaii General Excise Tax for "services") and issued me a 2016 salary W-2 with only Federal related withholding.
I've just dissolved the S-Corp via Hawaii DC-13 and notified the IRS via form 966. I am filing a final 1120S return using TT Business and will also issue a final K-1 distribution to shareholders for remaining cash and assets.
Which state(s) do I file the 2016 W-2 salary income with?
Which state(s) do I file the K-1 distribution to shareholders income with? And may I "assign" that final distribution to either a 2016 or 2017 tax return?
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Yes, you would report all your income on your resident State tax return. Income from investments is typically taxed only by your resident state.
As a cash-basis taxpayer, you must report all income in the year it is received. If any portion of the final distribution is for income (rather than a return of capital), you would include it as investment income on the tax return for that year.
Yes, you would report all your income on your resident State tax return. Income from investments is typically taxed only by your resident state.
As a cash-basis taxpayer, you must report all income in the year it is received. If any portion of the final distribution is for income (rather than a return of capital), you would include it as investment income on the tax return for that year.
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