New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES
Section 3.2.211.18 - ASSISTED LIVING FACILITIES
Universal Citation: 3 NM Admin Code 3.2.211.18
Current through Register Vol. 35, No. 18, September 24, 2024
A. Receipts of an assisted living facility received from its residents are receipts from the leasing of real property, receipts for providing services, and receipts from selling tangible personal property.
(1) The portion of receipts
attributable to the lease of real property, including a proportionate share of
the square footage of the common areas, is deductible from taxable gross
receipts of an assisted living facility pursuant to Section 7-9-53 NMSA
1978.
(2) The portion of receipts
attributable to providing services and tangible personal property provided to
residents of an assisted living facility are not deductible pursuant to Section
7-9-53 NMSA 1978.
B. For purposes of apportioning the receipts of an assisted living facility between deductible receipts from leasing real property and non-deductible receipts for providing services and tangible personal property to residents of the assisted living facility, a taxpayer may apportion its receipts using a reasonable accounting method.
(1) The use of fair rental
value methodology for purposes of determining the portion of its receipts
attributable to leasing real property is presumptively reasonable.
(2) While use of the fair rental value
methodology is presumptively reasonable, the conclusions of any report or study
or other supporting documentation or calculation of fair rental value may be
challenged by the department.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
