Illinois Administrative Code
Title 86 - REVENUE
Part 100 - INCOME TAX
Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS
Section 100.3300 - Allocation and Apportionment of Base Income (IITA Section 304)
Universal Citation: 86 IL Admin Code ยง 100.3300
Current through Register Vol. 48, No. 38, September 20, 2024
a) Residents. All items of income or deduction which are taken into account in the computation of base income for the taxable year by a resident of Illinois are allocated to Illinois under IITA Section 301(a) and enter into the computation of such person's net income under IITA Section 202. For the definition of a resident see IITA Section 1501(a)(20) and Section 100.3020 of this Part.
b) Other persons
1) In general. In order to compute net income
under IITA Section 202 of persons other than residents of Illinois, it is
necessary to determine that portion of each item of income and deduction taken
into account in the computation of base income for the taxable year which is
allocable to Illinois. In general, the allocation of items of compensation and
of items of deduction directly allocable thereto is governed by IITA Section
302 (see Section
100.3120
of this Part). The allocation of certain specified items of income, to the
extent such items constitute nonbusiness income, together with items of
deduction directly allocable thereto, is governed by IITA Section 303 (see
Section
100.3220
of this Part). The allocation and apportionment of business income is governed
by IITA Section 304 (see Sections
100.3310,
100.3350,
100.3360
and
100.3370
of this Part.) An item of income or deduction specifically allocated or
apportioned pursuant to one of the foregoing sections is allocated to Illinois
and enters into the computation of net income of a person other than a resident
only to the extent provided by such allocation or apportionment section. All
other items of income and deductions are allocated under IITA Section
301(b)(2).
2) Unspecified items. An
item of income or deduction which is taken into account in the computation of
base income for the taxable year by a person other than a resident of Illinois,
and which is not otherwise specifically allocated or apportioned, in the case
of an individual, trust or estate, is not allocated to Illinois. In the case of
a corporation, such items are allocated to Illinois if the corporation has its
commercial domicile in Illinois at the time such item is paid, incurred or
accrued. For the definition of commercial domicile, see IITA Section 1501(a)(2)
and Section
100.3210
of this Part. Examples of items of income which (to the extent such items
constitute nonbusiness income) are not otherwise specifically allocated or
apportioned are interest, dividends, items of income taken into account under
the provisions of
26 USC
401 through
425, benefit payments
received by a beneficiary of a supplemental unemployment benefit trust which is
referred to in
26 USC
501(c)(17) and royalties
from intangible personal property (other than patent and copyright
royalties).
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