McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 18

Root Beer, Inc.(RBI) is incorporated and headquartered in Seattle, Washington.RBI runs an internet business http://www.akerootbeer.om.RBI sells bottling equipment and other supplies to make home-made root beer.RBI has an Oregon warehouse facility that it ships goods from.Determine whether RBI has income tax nexus in the following situations:
a) Root Beer is incorporated and headquartered in Washington.It has property and employees in Oregon and Washington.Determine whether RBI has nexus in Oregon and Washington.b) Root Beer has hundreds of customers in California but has no physical presence (no employees or property).Determine whether RBI has nexus in California.c) Root Beer has 500 New York customers but has no physical presence (no employees or property).Remember New York has the new Amazon rule.Determine whether RBI has nexus in New York.