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A unitary business is a group of two or more corporations related by common ownership and sufficiently interdependent, integrated, or interrelated through their activities to file as one group The assets of the investment partnership were acquired with working capital from a trade or business activity conducted in illinois in which the nonresident partner or member of that partner’s unitary business group owns an interest. Each separate group requires its own top consolidation and elimination.
A unitary business refers to a collection of business activities that are interconnected and work together to achieve common goals Illinois dep’t of revenue, the supreme court held that the operational function test was not intended to modify the unitary business principle by adding a new ground for apportionment. These activities may involve multiple entities or a single entity, and they typically share ownership, management, and resources.
State tax considerations often get short shrift when planning for the sale of a business or investment held in a partnership
[1] that’s not surprising when we compare federal and state tax rates But sales of partnership interests can be taxable to a corporate or individual nonresident partner in states that the partner has no other connections apart from the activities of the underlying. Texas requires affiliated entities to file combined franchise tax reports if they operate as a unitary group Learn who qualifies and how to file in 2025.
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