IDAPA 35.01.01.128 — IDAHO ADJUSTMENTS -- PASS-THROUGH ENTITIES (RULE 128)

01.
In General. An adjustment to a partnership, S corporation, estate or trust allowed or required by
Idaho statute generally is claimed on the income tax returns of the partners, shareholders, or beneficiaries of the
entity.
(4-6-23)
a.
Partnerships. An adjustment passes through to a partner based on that partner's distributive share of
partnership profits.
(4-6-23)
b.
S Corporations. An adjustment passes through to a shareholder based on that shareholder's pro rata
share of income or loss.
(4-6-23)
c.
Estates and Trusts. An adjustment passes through to a beneficiary in the same ratio that income is
allocable to that beneficiary.
(4-6-23)
02.
Limitations. Deductions claimed on a partner's, shareholder's, or beneficiary's tax return may not
exceed the limitations imposed by statute or rule.
(4-6-23)
03.
Different Taxable Year Ends. If a pass-through entity has a taxable year end different from that of
a partner, shareholder, or beneficiary, the adjustment is to be claimed in the same taxable year that income or loss
from that entity is reported for federal income tax purposes.
(4-6-23)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 130
Page 22
04.
Information Provided by a Pass-Through Entity. The pass-through entity will prepare and
distribute to each partner, shareholder, or beneficiary a schedule detailing the proportionate share of each adjustment.
Copies of these schedules is to be attached to the pass-through entity's Idaho income tax return or information return
for the taxable year that the adjustment is allowed or required.
(4-6-23)
05.
Pass-Through Entities That Pay Tax. Generally, a pass-through entity is to report the same Idaho
adjustments as those allowed to the individual partner, shareholder, or beneficiary for whom the pass-through entity is
paying the tax. However, certain deductions that may be allowed to the individual if reporting and paying the tax is
not allowed to the pass-through entity.
(4-6-23)