1. 1. The Missouri nonresident adjusted gross income shall be that part of the nonresident individual's federal adjusted gross income derived from sources within Missouri, as modified in the same manner as set forth in section 143.121 with respect to resident individuals. It shall be the sum of:

   1. (1) The net amount of items of income, gain, loss, and deduction entering into his federal adjusted gross income which are derived from or connected with sources in this state including

      1. (a) His distributive share of partnership income and deductions determined under section 143.421, and
      2. (b) His share of estate or trust income and deductions determined under section 143.391, and
      3. (c) His pro rata share of S corporation income and deductions determined under subsection 3 of section 143.471; and
   2. (2) The portion of the modifications described in section 143.121 which relate to income derived from sources in this state, including any modifications attributable to him as a partner.

2. 2. Items of income, gain, loss, and deduction derived from or connected with sources within this state are those items attributable to:

   1. (1) The ownership or disposition of any interest in real or tangible personal property in this state; and
   2. (2) A business, trade, profession, or occupation carried on in this state.
3. 3. Income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property, shall constitute income derived from sources within this state only to the extent that such income is from property employed in a business, trade, profession, or occupation carried on in this state.
4. 4. Deductions with respect to capital losses, net long-term capital gains, and net operation losses shall be based solely on income, gains, losses, and deductions derived from sources within this state in the same manner as the corresponding federal deductions under regulations to be prescribed by the director of revenue.
5. 5. If a business, trade, profession, or occupation is carried on partly within and partly without this state, the items of income and deduction derived from or connected with sources within this state shall be determined by apportionment and allocation under regulations to be prescribed by the director of revenue.
6. 6. Compensation paid by the United States for service in the armed forces of the United States performed by a nonresident shall not constitute income derived from sources within this state.

(L. 1972 S.B. 549, A.L. 1983 H.B. 849)

* Effective date see § 143.005