Taxpayers Win Against California in Business Location Dispute

Landlords who rented out property in Alaska successfully convinced a tax tribunal in California that they had no business connection to the Golden State and, therefore, shouldn’t have to pay state taxes there.

In a precedential opinion released Monday, the California Office of Tax Appeals said the landlords were not doing business in the state even though they filed a tax return for their Alaskan property from their home address in California. The landlords were two families who purchased the rental property when they lived near each other in Alaska, with one family subsequently moving to California.

The opinion says ...