Question:
What income of a nonresident will Colorado
tax?
Income earned by an individual while they are not a resident of Colorado
will be taxed in Colorado only if it is considered Colorado source
income and is included in their modified federal adjusted gross income.
(Modified adjusted gross income is the federal adjusted gross income
plus or minus some of the additions and subtractions to federal taxable
income that are reported on the individual income tax return Form 104.)
Modified federal
adjusted gross income shall be considered to be from sources within
Colorado to the extent it arises from:
-
A business, trade, profession or occupation carried on
in Colorado. This would include the profit from any business carried
on in Colorado and payments received for work performed in Colorado
either as an independent contractor or as an employee.
-
The ownership of any interest in real or tangible
personal property in Colorado. This would normally mean rents and
royalties from real or tangible personal property located in Colorado
or the gain or loss from the sale or other disposition of such
property;
-
Partnership, limited liability company or S corporation
income to the extent such income is from Colorado sources;
-
Income reported as being from an estate or trust to the
extent such income is from Colorado sources;
-
Income from intangible property to the extent such
property is employed in a trade, business, profession or occupation
carried on in Colorado. Examples of such income would be interest
income from a finance business located in or active in Colorado, or
royalty income from the use of a patent, trademark or copyright
employed in the active conduct of a Colorado business operation.
For Further
Information:
FYI Income 6 |
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