Apportioning/Allocating Income on CA 568 Return (Other Income from Nevada)
I am not sure if there is a fix. Basically, the issue is for an entity that files in one state (California); however, it functions and makes income outside of California.
Example:
Entity, Joe and John LLC (a CA LLC), in 20XX had two partners who consulted business on improving morale. Joe was in CA and John was in Nevada. Joe earned for the entity $200,000 and John earned $200,000. For simplicity, nothing Joe did was outside of California (i.e. all clients and services were based in California) while John was outside of California. They had separate offices in CA and Nevada, and John was not a resident just doing a work outside of California; rather, they were nonresidents working exclusively outside of California. Since the entity did not have more than $250,000 gross receipts for California based income - they should only have to owe the $800 LLC tax not the $900 LLC fee. However, I am not sure on how to do this on Lacerte without overriding the Schedule IW/Schedule B which will just cause a notice.
Is there a way to do this? Or does the entity despite not having more than $250,000 CA income still owe the $900.
Thank you!
