Question

Question 1:

If you were to have satisfied all criteria of PL 86-272, but you delivered goods using your own truck, are you protected or not?

Question 2:

Find what we believe whether the new budget rules for state for this transaction apply to city purposes. [rule for partnership activity - 1% or 1Million rule-satisfied if corp has 1% or greater interest in partnership or has basis in partnership of greater than 1Mill - then it has nexus thru partnership. (regulationalso describes 9 other instances when a foreign corp could be deemed to be behaving in partnership affairs.] this is nys rule, unclear if nyc adopted this rule.

Question 3:

Allocation of S Corp income at Shareholder level. We know partnership can allocate if it has another office in another state. Find authority on when S Corp can allocate out of state.

Answer 1

Answer.a. Provision of the act

Personal Property -

Public law 86-272 protects only solicitaton of orders for tangible personal property.

Solicitation -

• Solicitation by employees of orders that are approved outside the state and shipped from outside the state.
• Solicitation by independent contractors if the sales are shipped from outside the state.

Exclusions

Public law 86-272 does not protect a corporation in the state where it is incorporated.Likewise,it does not protect sellers of services or intangibles.In addition it provides protection only from taxes measured by income.Taxes measured by net worth or gross receipts,or sales and use taxes,are not covered.

b.According to New York State rule - If yor business,trade,profession and occupation is carried on wholly within New York State, all of the items of income, gain, loss and deduction derived from or connected with the business,trade or occupation are included in New York Source Income.

Also, the rule of partnership activity is adopted by NYC because it is already a NYS rule.

Dear student i feel very sorry because i cuold not Solve the third part of your question but i hope that u will get the right and easy answer soon. Thankyou