§ 220.16, F.S. — Allocation of nonbusiness income

Nonbusiness income shall be allocated as follows:

# (1)

(a) Net rents and royalties from real property located in this state are allocable to this state.(b) Net rents and royalties from tangible personal property are allocable to this state:1. If, and to the extent that, the property is utilized in this state; or2. In their entirety, if the taxpayer’s commercial domicile is in this state and the taxpayer is not organized under the laws of, or taxable in, the state in which the property is utilized.(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of the physical location of the property in the state during the rental or royalty period in the income year and the denominator of which is the number of days of the physical location of the property everywhere during all rental or royalty periods in the income year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, the tangible personal property is deemed to be utilized in the state in which the property was located at the time the rental or royalty payor obtained possession of the property.

# (2)

(a) Capital gains and losses from sales of real property located in this state are allocable to this state.(b) Capital gains and losses from sales of tangible personal property are allocable to this state if:1. The property had a situs in this state at the time of the sale; or2. The taxpayer’s commercial domicile is in this state, and the taxpayer is not taxable in the state in which the property had a situs.(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer’s commercial domicile is in this state.

# (3)

Interest and dividends are allocable to this state if the taxpayer’s commercial domicile is in this state.

# (4)

(a) Patent and copyright royalties are allocable to this state:1. If, and to the extent that, the patent or copyright is utilized by the payor in this state; or2. If, and to the extent that, the patent or copyright is utilized by the payor in a state in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this state.(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer’s commercial domicile is located.(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer’s commercial domicile is located.