Part-year residency with Schedule C - Spidell

Part-year residency with Schedule C

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Message Board Part-year residency with Schedule C

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    • #185896
      Karen Walker

      I have a client that lives six months of the year in CA and six months in OR. Domicile points to CA but residency is complicated. She is an artist and has begun selling her paintings online. She rents studio space in OR but also has a home studio in CA. She paints in both places. Her husband has a CA S-Corp and they have not previously filed an OR tax return.

      Because her sales will be mostly internet, is her business in CA or OR? Where does she register for a business license? Does renting the studio space in OR make this an Oregon business due to situs?

      I’m not sure if they would file a non-resident OR return to report the Schedule C or if it is possible to file a part-year CA/OR return for a taxpayer who splits their time between two states. The husband is definitely a CA resident so this would only apply to her. Can she actively participate in a business in a state where she is not a resident?

      I appreciate any guidance on this topic.

    • #186122
      Lynn Freer

      It would seem that she is a CA resident as her domicile is CA. If she is selling in OR she would certainly have to file an OR return, but not sure how it would work if she is selling on the Internet from both CA and OR, If she owes tax to both states, she will get a credit on the OR return for what she paid CA. But not sure if OR is going to try to make her a resident as well

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