IDAPA 35.01.01.115 — INTEREST EXPENSE OFFSET RELATED TO TAX-EXEMPT INTEREST INCOME (RULE 115)

Section 63-3022M, Idaho Code
01.
In General. The interest expense offset provided by Section 63-3022M, Idaho Code, is a separate
and distinct adjustment from provisions in the Internal Revenue Code that disallow interest expense related to federal
tax-exempt interest.
(4-6-23)
a.
If a taxpayer owns an interest in a pass-through entity, that entity's tax-exempt income is to also be
included to the extent of the taxpayer's interest.
(4-6-23)
b.
Interest income that is only partially exempt for federal purposes is not included. Also, expenses
related to tax-exempt interest income such as adjustments provided by Sections 265 and 291, Internal Revenue Code,
are not included.
(4-6-23)