Taxpayers to whom the special accrual rules apply

# (a)

The special accrual rules set forth in this Part apply to taxpayers who are part-year residents in a taxable year beginning on or after January 1, 1991, and do not apply to taxpayers who are part-year residents in a taxable year beginning prior to January 1, 1991.

# (b)

Examples.
Example 1: B is a part-year resident in his taxable year beginning January 1, 1991, having moved out-of-state in October 1991. B sold shares of stock in November 1990 and, for federal income tax purposes, recognized gain on the installment basis.
B is subject to the special accrual rules of this Part and shall either accrue the remaining installments to his period of residence in 1991 or file a surety bond or other security with the Department. See § 12-717(c)(1)-1.
Example 2: Assume the same facts, including the fact that B is a part-year resident in his taxable year beginning January 1, 1991, but he moved into Connecticut in October 1991. B is subject to the special accrual rules of this Part and shall accrue the remaining installments to his period of nonresidence in 1991. See § 12-717(c)(2)-1. The gain accrued under this section for the portion of the taxable year prior to a change of residence is not to be taken into account in determining the Connecticut adjusted gross of B for any subsequent taxable period. See

Example 3: C was a part-year resident in her taxable year beginning January 1, 1990, having moved out-of-state in June 1990. She had won the Connecticut lottery in 1989 when she was a resident individual. C is not subject to the special accrual rules of this Part and is not required to accrue any portion of her lottery winnings (paid in installments) to Connecticut because the year in which she was a part-year resident was a taxable year beginning prior to January 1, 1991. (If C was a partyear resident in her taxable year beginning January 1, 1991, she would have the option of accruing the remaining installments to her period of residence or, in lieu of offering security for payment of the tax, having income tax withheld by the Division of Special Revenue. See § 12-717(c)(4)-1.) Example 4: D was a part-year resident in her taxable year beginning on January 1, 1989, having moved into Connecticut in July 1989. In 1988, while a nonresident, D sold real property located in Connecticut and, for federal income tax purposes, recognized gain on the installment basis. D is not subject to the special accrual rules of this Part because the year in which she was a part-year resident was a taxable year beginning prior to January 1, 1991. D shall pay Connecticut income tax on each installment payment received after becoming a resident individual. (If D was a part-year resident in her taxable year beginning January 1, 1991, she would be subject to the special accrual rules but would not accrue items of income, gain, loss or deduction which are derived from or connected with Connecticut sources.
(Such items are to be includable or allowable for Connecticut income tax purposes when properly includable or allowable for federal income tax purposes.) See

# (c)

While this section pertains to Section 12-717 of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.