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

ljhyer
Level 2

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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IRonMaN
Level 15

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

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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2 Replies 2
IRonMaN
Level 15

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

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

View solution in original post

sjrcpa
Level 15

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


ex-AllStar