IDAPA 35.01.01.105 — ADJUSTMENTS TO TAXABLE INCOME -- ADDITIONS REQUIRED OF ALL TAXPAYERS

(RULE 105).
Section 63-3022, Idaho Code. The following must be added by all taxpayers in computing Idaho taxable income.
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01.
Interest and Dividend Income Exempt From Federal Taxation. Certain interest and dividend
income that is exempt from federal income tax must be added.
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a.
If a taxpayer has both Idaho and non-Idaho state and municipal interest income, expenses not
allowed pursuant to Sections 265 and 291, Internal Revenue Code, must be prorated between the Idaho and non-
Idaho interest income as provided in Subsections 105.04.b.i. and 105.04.b.ii. The addition to taxable income required
for non-Idaho state and municipal interest income must be offset by the expenses prorated to that interest income. The
allowable offset may not exceed the reportable amount of interest income. An unused offset may not be carried back
or carried over. A schedule showing the interest and related offsets must be attached to the return.
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i.
Expenses prorated to Idaho state and municipal interest income are based on the ratio of Idaho state
and municipal interest income to total state and municipal interest income.
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ii.
Expenses prorated to non-Idaho state and municipal interest income are based on the ratio of non-
Idaho state and municipal interest income to total state and municipal interest income.
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 107
Page 18
02.
Special First-Year Depreciation Allowance. The amount of depreciation computed for federal
income tax purposes that exceeds the amount of depreciation computed for Idaho income tax purposes must be
added.
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