Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES
Section 35.01.01.078 - TAX ON TRUSTS - ELECTING SMALL BUSINESS TRUSTS
Universal Citation: ID Admin Code 35.01.01.078
Current through September 2, 2024
Section 63-3024, Idaho Code
01. In General. The special rules for taxation of electing small business trusts as provided in Section 641, Internal Revenue Code, will apply for purposes of computing the Idaho income tax. These rules include the following:
a. The portion of an electing small business trust that consists of stock in one (1) or more S corporations will be treated as a separate trust.
b. The tax on the separate trust will be determined with the following modifications from the usual rules for taxing trusts:
i. The only items of income, loss, deduction, or credit to be taken into account are the items required to be taken into account as an S corporation shareholder under Section 1366, Internal Revenue Code, and any gain or loss from the disposition of stock in an S corporation.
ii. As provided in federal Treasury Regulations, administrative expenses will be taken into account to the extent allocable to the items described in Subparagraph 078.01.b.i.
iii. A deduction or credit will be allowed only for an amount described in this paragraph. No item described in this paragraph will be apportioned to any beneficiary.
c. A capital loss deduction provided by Section 1211(b), Internal Revenue Code, will be allowed only to the extent of capital gains.
Effective April 6, 2023
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