IDAPA 35.01.01.253 — NONRESIDENT AND PART-YEAR RESIDENT INDIVIDUALS -- ADDITIONS REQUIRED IN

COMPUTING IDAHO ADJUSTED INCOME.
Section 63-3026A(6), Idaho Code. The following must be added to Idaho adjusted gross income in computing the
Idaho adjusted income of nonresident and part-year resident individuals.
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01.
Interest and Dividends Not Taxable Pursuant to the Internal Revenue Code.
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a.
Part-Year Residents. Interest and dividend income not taxable pursuant to the Internal Revenue
Code that was received while residing in or domiciled in Idaho must be added. However, interest received from
obligations of the state of Idaho or any political subdivision of Idaho is exempt from Idaho income tax and is not
added.
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b.
Nonresidents. Interest and dividend income reportable from a pass-through entity that was
transacting business in Idaho must be added to the extent the income was apportioned or allocated as Idaho income.
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02.
Net Operating Loss Deduction. The amount of the net operating loss deduction included in Idaho
adjusted gross income must be added.
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03.
Capital Loss. Capital losses included in Idaho adjusted gross income must be added if the loss was
incurred while not residing in and not domiciled in Idaho, or if the loss relates to an activity not taxable by Idaho at
the time the loss was incurred.
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04.
Lump Sum Distributions. Part-year residents must add the taxable amount of a lump sum
distribution deducted in calculating taxable income received while residing in or domiciled in Idaho. This includes
both the ordinary income portion and the amount eligible for the capital gain election.
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05.
Idaho Medical Savings Account. An account holder must add the amount of any nonqualified
withdrawal from an Idaho medical savings account if the withdrawal was not made for the purpose of paying eligible
medical expenses.
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06.
Idaho College Savings Program.
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a.
An account owner must add the amount of a nonqualified withdrawal from an Idaho college
savings program, less the amount included in the account owner's Idaho adjusted gross income. The addition is
limited to contributions previously exempt from Idaho state income tax and earnings generated from the program as
long as the earnings are not already included in federal adjusted gross income. Nonqualified withdrawal is defined in
Section 33-5401, Idaho Code.
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b.
As provided in Section 63-3022(p), Idaho Code, an account owner must add the amount of a
withdrawal from an Idaho college savings program that is transferred on or after July 1, 2007, to a qualified tuition
program operated by a state other than Idaho. For taxable years beginning on or after January 1, 2008, the addback is
limited to the total of the amounts contributed to the Idaho college savings program that were deducted on the account
owner's Idaho income tax returns for the year of the transfer and the immediately preceding taxable year.
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07.
Special First-Year Depreciation Allowance. As provided by Section 63-3022O, Idaho Code, if a
taxpayer claims the special first-year depreciation allowance on property acquired before 2008 or after 2009 pursuant
to Section 168(k), Internal Revenue Code, the adjusted basis of that property and the depreciation deduction allowed
for Idaho income tax purposes must be computed without regard to the special first-year depreciation allowance. An
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 254
Page 33
individual must add the amount of depreciation computed for federal income tax purposes that exceeds the amount of
depreciation computed for Idaho income tax purposes. This addition does not apply to depreciation computed on
property acquired after 2007 and before 2010.
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