One of our clients has an S-corp in NV. He’s a 100% shareholder. He’s a pro boxer and had a fight in NY last year earning around $500k. The fight money was paid to his S-corp. So, I was going to prepare NY State and City S-corp tax returns. If so, no need to file his individual tax return in NY?
Yes he would have NY income from the S corporation and possible a portion of wages paid to NY would be subject to NY tax. Take a credit on CA for his tax paid and use apportionment on the CA return to compute CA income. You might want to take our webinar on California taxation of multistate businesses. If you need the info prior to the webinar later in August, I believe we still have last year’s available.