Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

S Corp Apportionment

MikiD
Level 3

Hi everyone,

My client is a California S-Corporation, but none of the income is generated in California. Specifically, this person formed an S Corp long time ago in California, but has since relocated and generates all of their consulting revenue in Washington state. The business is run in Washington, and the lone shareholder is a Washington resident. They still file the California S Corp return and pay the minimum tax in case their move back. I'm having difficulty as to how to make entries on the Apportionment screen to show that none of the income is from California sources and also have it be reflected on the generated California Return and Form K-1. It should involve sales figures only, no property or payroll. To my knowledge, the individual shareholder should not need to file a California return (again, resident of Washington), even as non resident, if no income is actually generated in or from California. My concern is that the California K-1 might flag it otherwise. Is the best solution here to have no income reported in Column E [California Source Amounts] of the CA K-1? Or do I have to make additional adjustment entries somewhere? I'm not sure where to make the entries in Lacerte screen 50.011 so that the information is correctly presented throughout the return and K-1. The apportionment to California should be zero. 

Thank you

0 Cheers