Suppose there is an S corp in California, and the corp has a shareholder in TX. Does the TX shareholder have to file a CA-540NR tax return to report their profits from the S Corp's K1?
What if the corp is a C corp? Does the shareholder have to pay CA tax on the distributions reported on the 1099-DIV?
I'm guessing the answers are yes and no, but it doesn't quite make sense why S corp income is CA source.
We had a recent post about a CA LLC that has rental income, but I know that rental income from houses in CA is CA source income.