Hi Bob,

Column E shows $0 across the board for CA-source amounts on the non-resident partner's CA K-1.  I agree that it sounds like an attempt to get out of paying CA taxes, which is why I questioned the CA K-1 in the first place.  Essentially, they are saying that neither the partnership nor the partner owe CA taxes.  My concern is solely for the non-resident partners.  They are adamant that they do not need to file a non-resident CA return for the K-1 income.  I just don't want them to get into hot water if the CA K-1 from the partnership is incorrect and should show the income to the partner as CA-source income.