State of California Residency Considerations for Non-resident Corporate Executives that are Physically Present in California Part-Time
By Anthony Diosdi Just like many Americans, executives from foreign countries are drawn to California for its natural beauty, nearly perfect weather, and its economy. To take advantage of California’s economic opportunities and natural beauty, many foreign executives establish a “part-time” residence in California. This may result in the executive being classified as a California resident for income tax purposes and being subject to California state income tax on the executive’s worldwide income. This article will discuss the factors the California taxing authorities consider in determining whether “part-time” resident can be classified as a resident for state income tax purposes.In order to go through the various tests the California taxing authorities use to determine tax residency, we will utilize a hypothetical individual named Tom. Let’s assume that Tom and his…