Filing Taxes Question (Live & Work in one but small business in another)

[2y4life]

Hello all. I am a teacher who lives in Madison, Wisconsin and last year (April 2015), I decided to venture into a small business with my uncle who lives in North Carolins. The business is a poultry farm and my uncle takes care of everything but 4 of the chicken houses are under my name. Since I lived in Wisconsin all of 2015, do I have to file in both Wisconsin and North Carolina or just in Wisconsin? Please advise and thanks ahead of time

John

 

[FlyingRon]

You must file Federal tax and Wisconsin state income tax because you reside there. You need to file NC tax (a Non Resident return) on the income that you obtain due to services performed in NC or that arise from NC property. Just how this all gets taxed and filed depends on just what the business entity in NC is. I suspect from the sounds of it you have some sort of defacto partnership with your Uncle. It needs to be determined just what the participation and income apportionment is. I would recommend an accountant down in NC to handle this.