What amount of the distributive share of partnership net income is taxable by California for a nonresident with a $10,000 income from a California partnership?

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In California, nonresident partners are taxed on their share of income that is sourced from California. Since the nonresident has a partnership interest in a California partnership generating $10,000 in income, the full amount of this income is considered California-sourced and therefore fully taxable.

Partnership income is not considered to be exempt for nonresidents; instead, nonresidents are required to pay taxes on any income sourced from California. The effective approach for California tax law is to treat the entire income from California partnerships as taxable, regardless of the partner’s residency status.

Thus, the amount of the distributive share of partnership net income that is taxable to this nonresident in California is the full $10,000 from the partnership.