Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES
Section 35.01.01.264 - INCOME FROM REAL AND TANGIBLE PERSONAL PROPERTY
Universal Citation: ID Admin Code 35.01.01.264
Current through August 31, 2023
Section 63-3026A(3), Idaho Code
01. In General. Rents, royalties, profits, gains, losses and other items of income from the ownership or disposition of real or tangible personal property located in Idaho is Idaho source income. (4-6-23)
02. Property Located Within and Without Idaho. (4-6-23)
a. If the property is
located or used within and without Idaho, specific allocation of the income,
gain, or loss is appropriate if the gross receipts and related deductions and
expenses are readily identifiable from the location or use of the property in
Idaho. (4-6-23)
b. To the extent
income derived from real property located both within and without Idaho cannot
be specifically allocated, the rents, profits, gains, losses or other items of
income that constitute Idaho source income are determined by multiplying each
item of income by a fraction. The numerator of the fraction is the average
value of the property located in Idaho and the denominator is the average value
of the property located both within and without Idaho. The value of real
property is determined by the original cost of the land and improvements. The
average value is determined by averaging the values at the beginning and end of
the taxable year. However, the Tax Commission may require the averaging of
monthly values during the taxable year if required to properly reflect the
average value of the taxpayer's property. (4-6-23)
c. To the extent income derived from tangible
personal property used both within and without Idaho cannot be readily
allocated, the rents, royalties, gains, losses, and other items of income that
constitute Idaho source income are determined by multiplying each item of
income by a fraction. The numerator of the fraction is the total number of days
the property was used in Idaho during the taxable year, and the denominator is
the total number of days the property was used both within and without Idaho
during the taxable year. (4-6-23)
03. Alternative Method. If either fraction in Subsection 264.02 does not fairly represent the income derived from the property's use in Idaho, the taxpayer may propose or the Tax Commission may require an alternative method. For example, acres may be a more appropriate measure than average value in some cases. (4-6-23)
a. The taxpayer will fully explain the
alternative method in a statement attached to his Idaho individual income tax
return. (4-6-23)
b. The method
proposed by the taxpayer may be used in lieu of the method in Subsection
264.02 unless the Tax Commission
expressly denies its use. (4-6-23)
Disclaimer: These regulations may not be the most recent version. Idaho may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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