While most U.S. states impose income tax on multistate business under the principles contained in the Uniform Division of Income for Tax Purposes Act, state courts and taxing authorities have interpreted that set of relatively uniform laws differently, especially with regard to the definition of business income. The differing interpretations of business income have increased significance to multistate businesses that are in the process of selling assets, liquidating or ceasing operations. This introductory teleconference details the mechanics of UDITPA and how that set of uniform laws requires allocation of nonbusiness income to a particular state and apportionment of business income among the states in which the business conducts activities. It also details, through existing and emerging case law, the narrow transactional test and the broad functional test, and the exceptions to those tests that courts have both found within UDITPAÆs definition of business income and used to determine whether revenue from certain asset sale transactions constitutes business or nonbusiness income.

Faculty: Frank Crociata, Patrick Derdenger, Steptoe & Johnson LLP

Verification and Attendance is the responsibility of Lorman Education For credit questions, please contact Lorman at 866-352-9540

On Demand CLE Hours: AK 1.5, AZ 1.5, CA 1.5, IL 1.5, MO 1.8, MS 1.5, MT 1.5, NC 1.5, ND 1.5, OR 1.5, PA 1.5, TN 1.5, VT 1.5, WA 1.5, WI 1.5, WV 1.8

Self-Study CLE Hours: AK 1.5, CO 2, GA 1.5, MO 1.8, MT 1.5, ND 1.5, OR 1.5, TX 1.5, UT 1.5, VT 1.5, WV 1.8

On demand orders placed on a weekend or holiday will be fulfilled on the next business day.