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Old 04-17-2018, 08:53 AM
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1120 s corp/non-resident tax NY

This s corp moved from New York to NJ in 2014 but did not revoke it's election to be treated as an S corp in New York. My questions are as follows:

1. Do I have to file a franchise tax for New York?

2. Does this S Corp have to file estimated tax for nonresident shareholder form IT-2658?

3. Is this individual who is the sole owner of the S Corp have to file a nonresident personal income tax (IT-203)?

4. If # 3 is "yes", does he have to include all income showing on K-1?

5. How will he report this k-1 income in NJ? Would he be able to get a jurisdiction credit from NY?

Any help in would be appreciated.

Thank you.



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Old 04-18-2018, 07:35 AM
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1. Do I have to file a franchise tax for New York?========> I think so; Franchise taxes are fees that corps must pay for the privilege of doing business in a particular state /city. Franchise taxes are not based on profit, meaning that even corps that lose money or only break even must pay them

2. Does this S Corp have to file estimated tax for nonresident shareholder form IT-2658?======>>yes; NYS S corps must file Form IT-2658 to make required estimated tax payments on behalf of shareholders who are nonresident individuals with the following exceptions: Estimated tax payments are not required for any shareholder whose estimated NYS tax required to be paid for the tax year by the partnership or NYS S corp is $300 or less per tax type

3. Is this individual who is the sole owner of the S Corp have to file a nonresident personal income tax (IT-203)?======>Correct;

4. If # 3 is "yes", does he have to include all income showing on K-1?====>Correct;

5. How will he report this k-1 income in NJ? Would he be able to get a jurisdiction credit from NY?=====>>since you are a non resident of NYS, you may, on your home state return, claim tax that youpay ti NYS on your home state return.
Th e best is to contact the NYS dept of taxTIONnd finance FOR MOIRE INFO INDETAIL.



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Old 04-18-2018, 02:52 PM
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1120 S Corp/Non-resident Tax NY

Thank you so much for your help. I just wanted verify the following:

1. If this S Corp had revoked his S corp election in NY, then he would have only be responsible to file NJ S Corp Tax?

2. Since his S Corp was originally formed in NY but now he moved to NJ where he conduct all his business, would the business still be considered a resident in NY or a non-resident?

3. If it's consider a resident S Corp, does he still have to file a personal tax return for NY when he is living in NJ?

Thank you.



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Old 04-19-2018, 09:06 AM
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1. If this S Corp had revoked his S corp election in NY, then he would have only be responsible to file NJ S Corp Tax?=======>>Correct; however, if the S corp terminates its tax status in the middle of its tax year, it might have to file its return. It will have to file a return covering the months during which the corp was still an S-corp. All income and losses from those months are reported on its return and the shareholders must include that financial data on their personal returns.

2. Since his S Corp was originally formed in NY but now he moved to NJ where he conduct all his business, would the business still be considered a resident in NY or a non-resident?=====>UNLESS THE S CORP IN nys IS TERNINATED, since the S corp is legally created by filing a Certificate of Incorporation with the New York Secretary of State, THE s corp is still considered a resident of NYS.

3. If it's consider a resident S Corp, does he still have to file a personal tax return for NY when he is living in NJ?====>As said previously yes Unless the S corp in NYS is fully terminated;an S corp is considered an independent legal entity under NYS law. S corp status is an IRS tax classification. Once of the consequences of corporate independence is that if you want to dissolve the S CORP, you can't just lock the doors and walk away. Before NYS will consider your corp legally dissolved, you must satisfy state authorities that certain formalities have been completed. You must also notify the IRS



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