IDAPA 35.01.01.275 — IDAHO SOURCE INCOME OF NONRESIDENT AND PART-YEAR RESIDENT INDIVIDUALS --

INVESTMENT INCOME FROM QUALIFIED INVESTMENT PARTNERSHIPS (RULE 275).
Section 63-3026A(3)(c), Idaho Code
01.
In General.
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a.
For taxable years beginning on or after January 1, 2007, the Idaho taxable income of a nonresident
individual does not include the distributive share of investment income of a qualified investment partnership. The
distributive share of noninvestment income of a qualified investment partnership derived from or related to sources
within Idaho is included in Idaho taxable income. See Rule 250 of these rules for information on when pass-through
income from a partnership is deemed to have been received.
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b.
The exemption from tax on investment income from a qualified investment partnership does not
apply to gains or losses derived from the sale of a nonresident individual's interest in a qualified investment
partnership. The source of these gains and losses is governed by Section 63-3026A(3)(a)(vii), Idaho Code, and Rule
266 of these rules. The source of investment income that is not from a qualified investment partnership is determined
as provided in Rule 263 of these rules.
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02.
Qualified Investment Partnership. An entity is a qualified investment partnership only if it meets
both of the following criteria:
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a.
The entity is classified as a partnership for federal income tax purposes, but is not a publicly traded
partnership taxed as a corporation under Section 63-3006, Idaho Code.
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b.
The gross income from investments of the entity is derived at least ninety percent (90%) from
investments that when held by a nonresident individual directly, would not produce income subject to the Idaho
income tax.
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03.
Investment Income. For purposes of this exclusion, an item of partnership income is investment
income only if it would not be Idaho taxable income of a nonresident individual if the individual held the investment
directly.
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04.
Examples. Available at Income Tax Rules Examples.
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