Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES
Section 35.01.01.286 - S CORPORATIONS OPERATING WITHIN AND WITHOUT IDAHO

Universal Citation: ID Admin Code 35.01.01.286

Current through September 2, 2024

Sections 63-3027 and 63-3030(a)(4), Idaho Code

01. In General. An S corporation that operates within and without Idaho must apply the principles of allocation and apportionment of income set forth in Section 63-3027, Idaho Code, and related rules to determine the extent of S corporation income that is derived from or related to Idaho sources. The use of a combined report, however, is available only to C corporations.

02. Information Provided to Shareholders. An S corporation must provide to each shareholder information necessary for the shareholder to compute his Idaho income tax. Such information must include:

a. The shareholder's share of each pass-through item of income and deduction;

b. The shareholder's share of each Idaho addition and subtraction;

c. The shareholder's share of Idaho qualifying contributions, Idaho tax credits, and tax credit recapture;

d. The shareholder's share of income allocated to Idaho;

e. The S corporation's apportionment factor; and

f. The shareholder's distributive share of S corporation gross income.

03. Protection Under Public Law 86-272. An S corporation whose Idaho business activities fall under the protection of Public Law 86-272 is exempt from the taxes imposed by Sections 63-3025 and 63-3025A, Idaho Code, including the minimum tax.

04. Qualified Subchapter S Subsidiary. A corporation that is a qualified subchapter S subsidiary (QSSS) must include its apportionment attributes with its parent's apportionment attributes to compute one Idaho apportionment factor for the S corporation. If the S corporation and its qualified subchapter S subsidiaries are carrying on more than one unitary business, each unitary business must allocate and apportion its income pursuant to Rule 340.03.

Effective April 6, 2023

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