{"data":{"id":"us-nm/7-3-14","jurisdiction":"us-nm","citation":"7-3-14","heading":"Composite returns.","body":"A. A pass-through entity may file a composite income tax return on behalf of electing nonresident members reporting and paying income tax at the highest marginal rate provided in Section 7-2A-5 NMSA 1978 on the members' pro rata or distributive shares of income of the pass-through entity from doing business in, or deriving income from sources within, this state.\nB. A nonresident member whose only source of income within a state is from one or more pass-through entities may elect to be included in a composite income tax return filed pursuant to this section.\nC. A nonresident member that has been included in a composite income tax return may file an individual income tax return and shall receive credit for tax paid on the member's behalf by the pass-through entity.\nD. As used in this section:\n(1) \"pass-through entity\" means a corporation that for the applicable tax year is treated as an S corporation pursuant to Section 1362(a) of the Internal Revenue Code and any entity with one or more members that is not taxed as a corporation pursuant to Subchapter C of the Internal Revenue Code;\n(2) \"member\" means a shareholder of an S corporation; a partner in a general partnership, a limited partnership or a limited liability partnership; a member of a limited liability company; or a beneficiary of a trust; and\n(3) \"nonresident\" means an individual who is not a resident of or domiciled in the state, a business entity that does not have its commercial domicile in the state or a trust not organized in the state.","path":["Chapter 7 - Taxation","ARTICLE 3 Income Tax Withholding"],"source_url":"https://nmonesource.com/nmos/nmsa-unanno/en/item/18507/index.do","current_through":"2026-07-01","vintage":"","retrieved_at":"2026-09-03T15:02:19Z","sha256":"3c7783b4013689372e4f962b05fbebcd535225f0af0af6b55f3b0ec5f82f346a","source_id":"us-nm","stale":false,"prev":"us-nm/7-3-13","next":"us-nm/7-3a-1"},"notice":"GroundRules: Original legal text. Not legal advice."}