amec
Level 5
08-07-2025
03:48 PM
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As an individual the client also files a form 568 with CA as a SMLLC. The form requires you to enter CA source gross receipts to pay the gross receipts fee on that amount (in addition to the required $800). But this income is not CA source, it's rental income from another state.
The client does pay tax on the income on the CA 540 return on based on schedule E (+/- federal/CA differences).