IDAPA 35.01.01.078 — TAX ON TRUSTS -- ELECTING SMALL BUSINESS TRUSTS (RULE 078)

Section 63-3024, Idaho Code
01.
In General. The special rules for taxation of electing small business trusts as provided in Section
641, Internal Revenue Code, will apply for purposes of computing the Idaho income tax. These rules include the
following:
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a.
The portion of an electing small business trust that consists of stock in one (1) or more S
corporations will be treated as a separate trust.
(4-6-23)
b.
The tax on the separate trust will be determined with the following modifications from the usual
rules for taxing trusts:
(4-6-23)
i.
The only items of income, loss, deduction, or credit to be taken into account are the items required
to be taken into account as an S corporation shareholder under Section 1366, Internal Revenue Code, and any gain or
loss from the disposition of stock in an S corporation.
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ii.
As provided in federal Treasury Regulations, administrative expenses will be taken into account to
the extent allocable to the items described in Subparagraph 078.01.b.i.
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iii.
A deduction or credit will be allowed only for an amount described in this paragraph. No item
described in this paragraph will be apportioned to any beneficiary.
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c.
A capital loss deduction provided by Section 1211(b), Internal Revenue Code, will be allowed only
to the extent of capital gains.
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