Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.2 - Income Allocation and Apportionment
Rule 42.26.205 - TWO OR MORE BUSINESSES OF A SINGLE TAXPAYER
Current through Register Vol. 6, March 22, 2024
(1) A taxpayer may have more than one "trade or business." In such cases, it is necessary to determine the apportionable income attributable to each separate trade or business. The income of each business is then apportioned by an apportionment formula which takes into consideration the in-state and out-of-state factors which relate to the trade or business income being apportioned.
(2) The determination of whether the activities of the taxpayer constitute a single trade or business will depend on the facts in each case. In general, the activities of the taxpayer will be considered a single business if there is evidence to indicate that the segments under consideration are integrated with, dependent upon, or contribute to each other and the operations of the taxpayer as a whole. The following factors are considered to be good indicia of a single trade or business, and the presence of any of these factors creates a strong presumption that the activities of the taxpayer constitute a single trade or business:
AUTH: 15-1-201, 15-31-313, 15-31-501, MCA; IMP: 15-1-601, Title 15, chapter 31, part 3, MCA