IDAPA 35.01.01.265 — SOLE PROPRIETORSHIPS OPERATING WITHIN AND WITHOUT IDAHO (RULE 265)

Section 63-3026A(3), Idaho Code
01.
In General. A sole proprietorship that operates within and without Idaho will apply the principles
of allocation and apportionment of income set forth in Section 63-3027, Idaho Code, and related rules to determine
the extent of proprietorship income that is derived from or related to Idaho sources. The use of a combined report,
however, is available only to C corporations.
(4-6-23)
02.
Application of Rule. This rule also applies to farming activities operated as a sole proprietorship.
(4-6-23)
03.
Alternative Method. If the method described in Subsection 265.01 does not fairly represent the
extent of the business activity in Idaho, the taxpayer may propose or the Tax Commission may require an alternative
method.
(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 265.01
unless the Tax Commission expressly denies its use.
(4-6-23)