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Sub S Corp with Income & Expenses in both CA & MN

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Level 2
last updated ‎February 15, 2020 11:31 AM

I want to allocate income & expenses between the two states.  The only allocations open to me within Lacerte is income & payroll expense.  No allocations are available within the program for any of the other expenses.   I'm just not sure how to handle this. 

Let me provide some basic info:  This is a CA Corp that opened another office in MN in 2019.  Significant income and expenses were generated in both states.  There are 2 shareholder's who are residents of both states, they split their time so a Composite filing in MN would not be available to them since they are residents.  Additionally, as I understand it there is a filing requirement in MN, as well as CA so apportioning it wouldn't work either.  Of course, correct me if I am wrong on my assumptions here.

What I want to do is file a consolidated Federal return and a CA return showing CA income & expense only and a MN return showing MN income & expense only and have them both tie back to the federal return without confusion. 

How do I file these returns correctly.  I appreciate all your input in advance.

Thank you,

Linda 

 

 

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Level 15
last updated ‎February 15, 2020 11:31 AM

Minnesota income will be allocated based on sales, payroll, and property within the state.  I assume CA is somewhat similar.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

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Highlighted
Level 15
last updated ‎February 15, 2020 11:31 AM

Minnesota income will be allocated based on sales, payroll, and property within the state.  I assume CA is somewhat similar.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

View solution in original post

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Level 14
last updated ‎February 15, 2020 11:31 AM

Most states apportion income using sales, payroll and property. Very rarely is allocating using exact income and expenses allowed.


ex-AllStar