(a) Nonresidents of the State are taxable only upon taxable income derived from sources within this State (Revenue and Taxation Code section 17041, subdivision (b)), and, accordingly, are required to include in gross income in making their returns only that portion of their gross income which is relevant in determining the amount of taxable income derived from source within this State. (For definition of nonresident, see Revenue and Taxation Code sections 17014 through 17016 and the regulations issued thereunder). For meaning of income from sources within this State, see Reg. 17951-2.

(b) The gross income of a nonresident of the State who is a member of a partnership, pool or syndicate includes, in addition to any other income from sources within this State, the member's distributive share of the taxable income of the partnership, pool or syndicate to the extent that the member's distributive share is derived from sources within this State. Amounts received from a partnership by a nonresident partner as payments for services or use of capital, constitute gross income of a nonresident. (See Reg. 17951-4).

(c) A nonresident beneficiary of an estate or trust must include in gross income, income from the estate or trust which is deductible by the estate or trust and which is derived from sources within this State. (For computation of income of estates and trusts, deductible income, etc., see Chapter 9 (Sec. 17731 and following)). However, qualified retirement income, as defined in Revenue and Taxation Code section 17952.5, received by a nonresident beneficiary of an estate or trust during a taxable year beginning on or after January 1, 1996, is not included in gross income derived from sources within this State.