Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Regulation 1997-4 - Comprehensive Individual Income Tax Regulations
Rule 26-51-405 - PARTNERSHIP INCOME


Current through Register Vol. 49, No. 9, September, 2024

Partnership income must be allocated to the state where it was actually earned All partnership income from activities carried on within Arkansas shall be allocated to Arkansas. For example, a partnership comprised of two (2) partners earned $100,000.00 during the tax year. One partner resides in Arkansas and the other in Louisiana. $30,000.00 of the partnership's income is allocable to activity carried on in Arkansas by, or on behalf of, the partnership. Each partner's distributive share of the partnership's income is 50%. Therefore, the Arkansas based partner would report $15,000.00 in gross income on his resident Arkansas individual income tax return and the Louisiana based partner would report $15,00.00 in gross income on his nonresident Arkansas individual income tax return.

Because a portion of the partnership's income was allocable to Arkansas, the partners will need to file a partnership tax return (AR1050) with the State of Arkansas.

Disclaimer: These regulations may not be the most recent version. Arkansas 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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