01.
Assignment of Receipts. The
assignment of receipts to a state or states in the instance of a sale or
exchange of intangible property depends upon the nature of the intangible
property sold. For purposes of this Rule (550), a sale or exchange of
intangible property includes a license of that property where the transaction
is treated for tax purposes as a sale of all substantial rights in the property
and the receipts from transaction are not contingent on the productivity, use
or disposition of the property. For the rules that apply where the
consideration for the transfer of rights is contingent on the productivity, use
or disposition of the property, see Subsection
549.01. (4-6-23)
a. Contract Right or Government License that
Authorizes Business Activity in Specific Geographic Area. In the case of a sale
or exchange of intangible property where the property sold or exchanged is a
contract right, government license or similar intangible property that
authorizes the holder to conduct a business activity in a specific geographic
area, the receipts from the sale are assigned to a state if and to the extent
that the intangible property is used or is authorized to be used within the
state. If the intangible property is used or may be used only in Idaho the
taxpayer shall assign the receipts from the sale to this state. If the
intangible property is used or is authorized to be used in this state and one
or more other states, the taxpayer shall assign the receipts from the sale to
this state to the extent that the intangible property is used in or authorized
for use in this state, through the means of a reasonable approximation.
(4-6-23)
b. Sale that Resembles a
License (Receipts are Contingent on Productivity, Use or Disposition of the
Intangible Property). In the case of a sale or exchange of intangible property
where the receipts from the sale or exchange are contingent on the
productivity, use or disposition of the property, the receipts from the sale
are assigned by applying the rules set forth in Rule
549 (pertaining to the license or
lease of intangible property). (4-6-23)
c. Sale that Resembles a Sale of Goods and
Services. In the case of a sale or exchange of intangible property where the
substance of the transaction resembles a sale of goods or services and where
the receipts from the sale or exchange do not derive from payments contingent
on the productivity, use or disposition of the property, the receipts from the
sale are assigned by applying the rules set forth in Subsection
549.05 (relating to licenses of
intangible property that resemble sales of goods and services). Examples of
these transactions include those that are analogous to the license transactions
cited as examples in Subsection
549.05.
(4-6-23)
02.
Examples. Available at Income Tax Rules Examples.
(4-6-23)
