Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.15 - INCOME TAX
Subchapter 42.15.5 - Deductions
Rule 42.15.526 - SMALL BUSINESS LIABILITY FUNDS

Universal Citation: MT Admin Rules 42.15.526

Current through Register Vol. 18, September 20, 2024

(1) Tax deductible administrative costs as provided by 15-30-2141 and 15-31-117, MCA, are limited to those that are allowable under the Internal Revenue Code and are ordinary and necessary costs directly connected with or pertaining to the management or maintenance of the principal of the fund.

(2) Administrative costs are tax deductible by:

(a) a cash basis taxpayer in the year they are paid; or

(b) an accrual basis taxpayer in the tax year in which the accrual is made.

(3) Contributions to and administrative costs of an independent liability fund shall be reductions of income in arriving at Montana adjusted gross income.

(4) Upon termination of the independent liability fund the trustee shall file with the department a copy of the federal Form 1099. The returns must provide the amount of any distribution, to whom the distribution was made, and the calendar year of the distribution for any distribution made from the principal or income of the fund.

AUTH: 15-30-2620, 15-31-501, MCA; IMP: 15-30-2118, 15-30-2141, 15-31-117, 15-31-118, MCA

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