IDAPA 35.01.01.264 — INCOME FROM REAL AND TANGIBLE PERSONAL PROPERTY (RULE 264)

Section 63-3026A(3), Idaho Code
01.
In General. Rents, royalties, profits, gains, losses and other items of income from the ownership or
disposition of real or tangible personal property located in Idaho is Idaho source income.
(4-6-23)
02.
Property Located Within and Without Idaho.
(4-6-23)
a.
If the property is located or used within and without Idaho, specific allocation of the income, gain,
or loss is appropriate if the gross receipts and related deductions and expenses are readily identifiable from the
location or use of the property in Idaho.
(4-6-23)
b.
To the extent income derived from real property located both within and without Idaho cannot be
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 265
Page 38
specifically allocated, the rents, profits, gains, losses or other items of income that constitute Idaho source income are
determined by multiplying each item of income by a fraction. The numerator of the fraction is the average value of
the property located in Idaho and the denominator is the average value of the property located both within and
without Idaho. The value of real property is determined by the original cost of the land and improvements. The
average value is determined by averaging the values at the beginning and end of the taxable year. However, the Tax
Commission may require the averaging of monthly values during the taxable year if required to properly reflect the
average value of the taxpayer's property.
(4-6-23)
c.
To the extent income derived from tangible personal property used both within and without Idaho
cannot be readily allocated, the rents, royalties, gains, losses, and other items of income that constitute Idaho source
income are determined by multiplying each item of income by a fraction. The numerator of the fraction is the total
number of days the property was used in Idaho during the taxable year, and the denominator is the total number of
days the property was used both within and without Idaho during the taxable year.
(4-6-23)
03.
Alternative Method. If either fraction in Subsection 264.02 does not fairly represent the income
derived from the property's use in Idaho, the taxpayer may propose or the Tax Commission may require an alternative
method. For example, acres may be a more appropriate measure than average value in some cases.
(4-6-23)
a.
The taxpayer will fully explain the alternative method in a statement attached to his Idaho
individual income tax return.
(4-6-23)
b.
The method proposed by the taxpayer may be used in lieu of the method in Subsection 264.02
unless the Tax Commission expressly denies its use.
(4-6-23)