Connecticut Nonresident Business Apportionment Schedule

Nonresident Business Apportionment Schedule
Form CT-1040BA
Department of Revenue Services
State of Connecticut

2023

Schedule CT-1040BA

(Rev. 12/23)

Nonresident Business Apportionment

Formula basis apportionment of Connecticut income derived from
business carried on both inside and outside Connecticut
For the year January 1 – December 31, 2023, or other tax year beginning ______­­­­____________, 2023, and ending ______­­­­____________, _______.
Purpose: Nonresidents and part‑year residents (for the nonresidency portion of the year) must complete Schedule CT‑1040BA if they are carrying on business both in and
outside Connecticut and are required to allocate or apportion business income. Complete in blue or black ink only. Please note that each form is year specific. To prevent
any delay in processing your return, the correct year’s form must be attached to Form CT-1040NR/PY and submitted to the Department of Revenue Services (DRS).
First name and middle initial	

Last name

If a joint return, spouse's first name and middle initial	

Last name

Name of business	

Social Security Number

__ __ __

••
••

__ __

••
••

__ __

••
••

__ __ __ __

••
••

__ __ __ __

Spouse’s Social Security Number

__ __ __

Doing business as

Federal Employer Identification Number

Schedule A List all places, both inside and outside Connecticut, where you carry on business.
(1)
Street Address

(2)
City and State

(3)
Description: See Instructions.

r Check this box if Connecticut income was determined from separate books and records. Do not complete Schedule B.
Schedule B Formula basis apportionment of income or (loss) if separate books and records do not satisfactorily disclose the portion of business
income derived from or connected with Connecticut sources.

(Market Based Sourcing effective for 2017. See Special Notice 2017(1), Legislative Changes Regarding Single-Sales Factor Apportionment
and Market‑Based Sourcing.)
Column A
Totals - All Locations
1.

Gross receipts from the sale or disposition of tangible personal property held
for sale in the ordinary course of trade or business

1.

2.

Gross receipts from services

2.

3.

Gross receipts from the rental, lease or license of tangible personal property

3.

4.

Gross receipts from the rental, lease or license of intangible property

4.

5.

Gross receipts from the sale or disposition of intangible property held for
sale in the ordinary course of trade or business

5.

6.

Other

6.

7.

Total: Add Lines 1 through 6 in Column A and Column B

7.

8.

Apportionment fraction: Divide Line 7, Column B, by Line 7, Column A, and carry to six places

Column B
Connecticut Only

8.

Do not include receipts from the sale or disposition of tangible personal property or intangible property if the property is not held for sale
in the ordinary course of business.
Do not include receipts from the sale, rental, lease, or license of real property.
Apply the apportionment fraction on Line 8 to certain items of business income or loss to determine the amounts to be reported on Schedule
CT‑SI. See instructions for Schedule CT‑SI for details.

Complete and attach to Form CT‑1040NR/PY. Do not use staples.
Visit us at portal.ct.gov/DRS for more information.

Who Must Allocate or Apportion Business Income

An allocation or apportionment of business income must be made
if you are a nonresident and you are carrying on business both
in and outside of Connecticut.
Generally, you are considered to be carrying on business at the
location:
1.	Where you maintain, operate, or occupy desk space, an
office, a shop, a store, a warehouse, a factory, an agency, or
other place where your affairs are regularly carried on (this
summary is not all inclusive); or
2.	Where your business is transacted with a fair measure of
permanency and continuity.
You are considered to be carrying on business outside Connecticut
if you maintain, operate, or occupy outside Connecticut an office,
a shop, a store, a warehouse, a factory, an agency, or other place
where your business matters are systematically and regularly
carried on.
You are not considered to be carrying on business outside
Connecticut and may not allocate or apportion business income if
you have an occasional or isolated business transaction outside
Connecticut or if you have no regular place of business outside
of Connecticut.
You are not considered to be carrying on business in Connecticut
if your business activities in Connecticut are considered casual,
isolated, or inconsequential. See Activities Considered Casual,
Isolated, or Inconsequential at portal.ct.gov/DRS/Individuals/
Individual-Income-Tax.
Example 1: A plumber, who is a resident of Rhode Island,
carries on his business from an office in Danielson, Connecticut.
He has maintenance contracts with housing authorities in the
Worcester, Massachusetts, area that require him to regularly
perform his services at various locations in and around
Worcester. This taxpayer is considered to be carrying on
business in Connecticut (by reason of his office in this state)
and in Massachusetts (because his business is conducted there
with a fair measure of permanency and continuity).
Example 2: Assume the same facts as in Example 1 except
that the taxpayer carries on his business from an office in
Auburn, Massachusetts, and has maintenance contracts with
housing authorities in northeast Connecticut that require him
to regularly perform his services at various locations in and
around Connecticut. This taxpayer is considered to be carrying
on business in Massachusetts (by reason of his office there)
and in Connecticut (because his business is conducted here
with a fair measure of permanency and continuity).

Who Must Complete Schedule A

Nonresidents who are required to allocate or apportion
income because they carry on business both in and outside of
Connecticut must complete Schedule A.
If income is determined from separate books and records
of the business (allocation of income): If you carry on
business both in and outside of Connecticut and maintain
books and records that satisfactorily disclose the portion of
business income derived from or connected with sources within
Connecticut, check the box in the space immediately below
Schedule A. Do not complete Schedule B.
If you report income using this method, your income reported
to other states in which you carry on your business, where the
states permit allocation on the basis of separate books and
records, must result in a consistent allocation of income. Where
Schedule CT‑1040BA (Rev. 12/23)	

another state does not permit allocation on the basis of separate
books and records, a consistent allocation of income may not
be possible.
Example 3: Assume the same facts as in Example 1 except
that the plumber allocated, on the basis of separate books
and records, the income derived from his plumbing business
on his Connecticut nonresident return as follows. The income
from his plumbing business is $134,000 with $91,500 being
from Connecticut business and $42,500 from Massachusetts
business. Therefore, on his Massachusetts return, this taxpayer
must also allocate $91,500 of this income to Connecticut
and $42,500 to Massachusetts since Massachusetts permits
allocation on the basis of separate books and records.

Who Must Complete Schedule B

If your books and records do not satisfactorily disclose the portion
of business income derived from or connected with sources
within Connecticut, income from business carried on both in
and outside of Connecticut must be apportioned by using the
apportionment fraction (arrived at by completing Schedule B)
or by using an approved alternative method. Schedule B of
Schedule CT‑1040BA must be completed for this purpose and
attached to Form CT‑1040NR/PY. If you submit an alternative
method of apportionment, you must also complete Schedule
CT‑1040BA and include with it information explaining the
alternative method of apportionment.
The apportionment fraction or alternative method is not
applied to income from the rental of real property or gains
(losses) from the sale of real property. The entire income from
the sale, rental, lease, or license of Connecticut real property
or gain from the sale of the property is allocated to Connecticut
and the entire amount of any loss from the sale is allocated to
Connecticut. Rental income from real property located outside
Connecticut or gain from the sale of this property is allocated
outside Connecticut. Any loss connected with the property is
allocated outside Connecticut.
The apportionment fraction is applied to business income
(loss), farm income (loss), or to the income from intangible
personal property (such as annuities, dividends, interest, and
gains from the disposition of intangible personal property) if the
property is used in or connected with a business carried on both
in and outside of Connecticut.
If you carried on more than one business for which an
apportionment of business income is required on Schedule
CT‑1040BA, prepare a separate Schedule CT‑1040BA for each
business and attach all schedules to Form CT‑1040NR/PY.

Schedule A Instructions

In Column 1 and Column 2, list the exact locations both in and
outside of Connecticut where you carry on business. In Column 3,
describe the places listed in Column 1 and Column 2 (for example,
branch office, agency, factory, warehouse, etc.) and state
whether you rent or own these places.

Schedule B Instructions

Complete and file Schedule B if your business is carried on both
in and outside of Connecticut and you do not maintain separate
books and records that satisfactorily disclose the portion of
business income derived from or connected with sources within
Connecticut.
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Effective for taxable years beginning on or after January 1,
2017, a business, trade, profession, or occupation carried
on in Connecticut and outside of Connecticut must apportion
its income using a single factor gross income percentage.
Businesses must source receipts from the sales of services
and intangible property on a market basis. Receipts from
the rental, lease, or license of tangible personal property are
sourced according to the location of the property. Receipts
from the sale of tangible personal property continue to be
sourced based upon the location of the purchaser. See Special
Notice 2017(1), Legislative Changes Regarding Single‑Sales
Factor Apportionment and Market‑Based Sourcing.

Line 1 - Gross Receipts From the Sale or Disposition of
Tangible Personal Property Held for Sale in the Ordinary
Course of Trade or Business
Enter in Column A the total gross receipts from sales of tangible
personal property in and outside of Connecticut.
Enter in Column B the gross receipts from sales of tangible
personal property delivered or shipped to a purchaser within
Connecticut regardless of F.O.B. point or other conditions of sale.

Line 2 - Gross Receipts From Services
Enter in Column A gross receipts from services in and outside
of Connecticut.
Enter in Column  B gross receipts from services where the
market for the services is within Connecticut. The market for the
services is within Connecticut if and to the extent the service is
used within Connecticut.

Line 3 - Gross Receipts From the Rental, Lease or License
of Tangible Personal Property
Enter in Column A the total gross receipts from the rental,
lease or license of tangible personal property in and outside of
Connecticut.
Enter in Column B the gross receipts from the rental, lease or
license of tangible personal property located within Connecticut.

Line 4 - Gross Receipts From the Rental, Lease or License
of Intangible Property
Enter in Column A the total gross receipts from the rental, lease
or license of intangible property in and outside of Connecticut.
Enter in Column B the gross receipts from the rental, lease or
license of intangible property if and to the extent the property is
used within Connecticut. Intangible property utilized in marketing
a good or service is used in Connecticut if that good or service
is purchased by a consumer within Connecticut.

Enter in Column B gross receipts from the sale or other
disposition of intangible property located, managed or controlled
within Connecticut held for sale to customers in the ordinary
course of business. Do not include receipts from property not
held for sale in the ordinary course of business.

Line 6 - Other
Enter in Column A the total gross receipts earned in and outside
of Connecticut that are not otherwise reported in Line 1 through
Line 5.
Enter in Column B the total gross receipts earned in Connecticut
that are not otherwise reported in Line 1 through Line 5.
Do not, however, include:
•	 Receipts from the sale or disposition of tangible personal
property or intangible personal property if the property is not
held for sale in the ordinary course of business; or
•	 Receipts from the sale, rental, lease or license of real
property.

Line 7 - Total
Add Lines 1 through 6 in Column A and Column B.

Line 8 - Apportionment Fraction
Divide Line 7, Column B, by Line 7, Column A, and carry to six
places.
Each item of business income (loss) reported on federal
Form 1040, which is required by these instructions to be apportioned,
is multiplied by the fraction on Line 8. Nonresidents enter the
apportioned amounts on the proper lines of Schedule CT‑SI.
Part‑year residents enter the apportioned amounts on the proper
lines of Schedule CT‑1040AW, Column D.
Do not apply the apportionment fraction to income from the
rental of real property or gains or losses from the sale of real
property. The entire rental income from Connecticut real property
or gain from the sale of the property is allocated to Connecticut
and the entire amount of any loss from the sale is allocated to
Connecticut. Rental income from real property located outside
Connecticut or any gain or loss from the sale of this property is
allocated out of state.
If receipts from the sale of tangible personal property are
excluded from the sales factor, the net gain (or loss) from such
sale should be allocated to the state where the property is
located and is not subject to apportionment.

Line 5 - Gross Receipts From the Sale or Disposition of
Intangible Property Held for Sale in the Ordinary Course
of Trade or Business
Enter in Column A the total gross receipts from the sale or other
disposition of intangible property in and outside of Connecticut.

Schedule CT‑1040BA (Rev. 12/23)	

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