Electing out might also be beneficial if the member needs portfolio (nonbusiness) income to be able to increase a net operating loss (NOL) by claiming more nonbusiness deductions (which are limited to nonbusiness income
In states that do not permit a deduction for or otherwise exclude the deemed repatriation income from the state tax base as Subpart F income, taxpayers should consider treating the deemed repatriation income as a dividend eligible for a dividends-received deduction or, alternatively, as allocable nonbusiness income
. Taxpayers should also review each applicable states corporate income tax conformity to the federal percentage deduction of the deemed repatriation income contained in IRC Section 965(c).
Pennsylvania Court Case on Nonbusiness Income
and NOL Carryovers
However, the FDOR did audit the FCIT amended return for the tax year ending December 31, 2009, on March 14, 2016, and disagreed with a nonbusiness income
subtraction taken by the Florida taxpayer relating to the sale of a subsidiary corporation.
(215) If the parent corporation sells all of the stock of the target corporation to a buyer corporation and no election is made for either state's purposes, the transaction generates gain from the sale of stock, which is likely nonbusiness income
to the nondomiciliary parent corporation.
Finally, nonbusiness deductions are limited to the amount of nonbusiness income
. Common examples of these include medical expenses, alimony, charitable contributions, investment interest, qualified residence interest, IRA contributions and--for nonitemizing taxpayers--the standard deduction.
The economic value is only known after it is converted to an NOL by removing nonbusiness/personal deductions in excess of nonbusiness income
. Nonbusiness deductions include all itemized deductions (less personal casualty and theft losses and unreimbursed employee business expenses) plus self-employed retirement plan contributions.
is taxed at the standard Ohio graduated rates capped at 4.997%.
Alabama Department of Revenue, which involves the characterization of income from the sale of assets as apportionable business income versus allocable nonbusiness income
for state tax purposes.
A corporation's net income for a taxable year is its adjusted federal income (10) plus nonbusiness income
allocated to Florida less an exemption.
The Tax Court relied also on Oregon's statutory definitions of "business income" and "nonbusiness income
," derived from UDITPA, as well as regulatory interpretations of these terms, in its analysis (Or.
On October 26, 2012, TEI filed the following brief amicus curiae with the Supreme Court of the United States in a case involving the characterization of income from the sale of assets as apportionable business income versus allocable nonbusiness income
for state tax purposes.