IDAPA 35.01.01.256 — NONRESIDENT AND PART-YEAR RESIDENT INDIVIDUALS -- PRORATION OF QUALIFIED

BUSINESS INCOME DEDUCTION (RULE 256).
Section 63-3026A(6), Idaho Code
01.
In General. The qualified business income deduction allowable for federal purposes is allowed in
part in computing Idaho taxable income. To determine the portion of qualified business income deduction allowable
for part-year and nonresident individuals, the qualified business income deduction allowed by Section 199A, Internal
Revenue Code, is multiplied by the calculated proration.
(4-6-23)
02.
Proration. For taxable years beginning in or after 2018, the proration is calculated by dividing the
total Idaho source qualified business income (loss) by the total qualified business income (loss). Calculate four (4)
digits to the right of the decimal point. If the fifth digit is five (5) or greater, the fourth digit is rounded to the next
higher number ($10,000 / $15,000 = .66666 = .6667 = 66.67%). If the fifth digit is less than five (5), the fourth digit
remains unchanged and any digits remaining to its right are dropped ($10,000 / $30,000 = .33333 = .3333 = 33.33%).
The percentage may not exceed one hundred percent (100%), nor be less than zero (0).
(4-6-23)
a.
Idaho source qualified business income or (loss) means the taxpayer's Idaho apportioned share of
the qualified business income or (loss) from each qualified trade or business.
(4-6-23)
b.
If the net Idaho source qualified business income is zero or less, no qualified business income
deduction is allowed for Idaho income tax purposes.
(4-6-23)