A resident individual who is a shareholder of a Subchapter S corporation that is incorporated and doing business in another state may deduct from the tax otherwise due under this chapter the tax paid to the other state as a result of such income, distributions or dividends; provided, that there exists a tax credit reciprocity agreement between Tennessee and the other state. In no case shall the credit permitted under this section exceed the tax that would be payable to this state.
Tenn. Code Ann. § 67-2-122
Taxes paid on out-of-state shares of Subchapter S corporation
Applied in 1 court decision — leading case W. Turner Boone v. Loren L. Chumley, Commissioner of The Tennessee Department of Revenue (2011)
Most recently applied in W. Turner Boone v. Loren L. Chumley, Commissioner of The Tennessee Department of Revenue (November 2011)
Acts 1994, ch. 787, § 1.
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.