Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-3-24 - TAXATION OF PARTNERSHIPS
Section 810-3-24-.01 - Taxability Of Partnership Income
Universal Citation: AL Admin Code R 810-3-24-.01
Current through Register Vol. 42, No. 11, August 30, 2024
(1)
(a) A
partnership is considered to be a "conduit" of income to each partner and not a
taxable entity under Alabama income tax law.
(b) The term "partnership" includes a limited
partnership, a general partnership, and a syndicate, group, pool, or joint
venture which is not a corporation, estate, trust or sole proprietorship within
the meaning of the Alabama income tax law.
(c) The term "partner" means any person who
is a member of a partnership.
(d)
The term "person" as used in this rule includes an individual, corporation,
fiduciary or another partnership.
(2) A partnership, once established, continues until all business activities, financial operations, or ventures of the partnership carried on by any of its partners as the partnership cease.
(3)
(a) Each partner shall include in gross
income from all sources, the distributive share of the income (or loss) of a
partnership for any partnership year ending within the partner's taxable year.
For an Alabama resident, this amount will also be included in Alabama gross
income.
(b) Each nonresident
partner shall include in Alabama gross income the distributive share of
partnership income (or loss) attributable to Alabama as provided in Rule
810-3-24-.02(2).
For the purpose of apportioning deductions based on the ratio of Alabama
adjusted gross income to total adjusted gross income, total adjusted gross
income will include the nonresident partner's full share of the partnership
income, and not just the portion attributable to Alabama.
(4) The Internal Revenue Code contains provisions similar to those in § 40-18-24. The department will consider administrative rulings and judicial decisions in respect to the similar provisions of federal law and regulations in interpreting this rule.
Authors: Christina Hall, Ecta Spicer, Roy Wiggins, John H. Burgess
Statutory Authority: Code of Ala. 1975, § 40-18-24.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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