Tax question on trading remotely

Discussion in 'Prop Firms' started by hypo, Apr 7, 2008.

  1. hypo

    hypo

    Hi guys,

    Anyone trading in California but getting K-1 from another state (NY to be specific)? Not sure if I have to pay for New York income tax as well as California.

    :confused:

    Any light that can be shed on this would be greatly appreciated!
     
  2. Are you getting this as a part year resident?

    If so, you prorate

    Or do you have a business in both places? Are you an active/passive investor?

    You are a little nebulous here
     
  3. hypo

    hypo

    Live and trade full time in California....my prop firm is New York based so they issue a K-1 out of a NY LLC
     
  4. You pay only were you live and work. I would speak with your firm or an account. Your LLC might have to pay tax in NYC since you are a partner though.
     
  5. When it comes to the very greedy New York State the tax laws are not so simple. From the New York Times:

    Telecommuters Not Exempt From New York Tax

    By MICHAEL COOPER

    Published: March 30, 2005


    LBANY, March 29 - Commuters from out of state who take cars, trains and buses to jobs in New York have long grumbled about having to pay New York State income tax. A ruling handed down on Tuesday by the state's highest court found that the growing ranks of telecommuters from out of state must also pay.

    The Court of Appeals ruled 4 to 3 that a computer programmer for a group of trade unions in Queens who works mostly out of his home in Nashville must pay New York State tax on all his income, not just on part.