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Scenario $9$: Multi$-$State Mayhem

A sole proprietor runs a consulting business with clients nationwide.

Home office is in State A $($high income tax rate$).$

Travels extensively for client work with significant time spent in:

State B $($moderate income tax rate$)$

State C $($no state income tax$)$

Business has a $$30,000$ NOL carryforward.

Other Income:

Wages: None $($all business income$)$

Interest & Dividends: $$1,200$

Itemized Deductions: $$16,000$

Allowable deduction for self$-$employment tax: $$2,400$

Questions:

How does the business income get allocated among the different states? Analyze the factors each state might consider.

Could the taxpayer be subject to double taxation?

How does the NOL carryforward interact with multi$-$state apportionment of income? Does it get split between states?