Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.9 - Special Rules for Construction Contracts
Rule 42.26.904 - COMPLETED CONTRACT METHOD - SPECIAL COMPUTATION
Current through Register Vol. 6, March 22, 2024
(1) The completed contract method of accounting requires that the reporting of income (or loss) be deferred until the year the construction project is completed or accepted. Accordingly, a separate computation is made for each such contract completed during the income year regardless of whether the project is located within or without this state, in order to determine the amount of income which is attributable to sources within this state. The amount of income from each contract completed during the income year apportioned to this state, plus other apportionable income apportioned to this state by the regular three-factor formula such as interest income, rents, royalties, income from short-term contracts, etc., plus all nonapportionable income allocated to this state is the measure of income for the income year.
(2) The amount of income (or loss) from each contract which is derived from sources within this state using the completed contract method of accounting is computed as follows:
AUTH: 15-31-313, 15-31-501, MCA; IMP: 15-31-301, 15-31-312, MCA