Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.4 - Special Rules Related to Installment Sales
Rule 42.26.401 - SPECIAL RULES RELATED TO INSTALLMENT SALES
Universal Citation: MT Admin Rules 42.26.401
Current through Register Vol. 6, March 22, 2024
(1) The amount of the gain or loss from the sale of assets used in the regular course of business which is apportioned to this state shall be calculated separately if the taxpayer elects to report the gain on the installment method. The separate calculation shall be made:
(a) for installment sales of Montana assets
which generate net gains in excess of $2,500,000; or
(b) installment sales of major assets located
outside the state of Montana which generate net gains in excess of
$10,000,000.
(2) The separate calculation shall be made as follows:
(a) for purposes of the receipts factor the
total net gains from the sale shall be included in the receipts factor in the
year of the sale unless specifically excluded from the receipts factor under
another part of ARM
42.26.263;
(b) for purposes of calculating apportionable
income from the installment sale, the factors of the year of sale shall be
utilized in apportioning the gain regardless of the year in which the income is
reported; and
(c) the factors of
the year of sale shall be applied to the gain from the sale as it is reported
by the taxpayer to determine the amount of apportionable income from the sale
which is apportionable to this state, unless the gain is accelerated under ARM
42.26.276.
AUTH: 15-31-313, 15-31-501, MCA; IMP: 15-31-305, MCA
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