IDAPA 35.01.01.336 — APPORTIONABLE AND NONAPPORTIONABLE INCOME: APPLICATION OF DEFINITIONS

(RULE 336).
Section 63-3027(1)(a), 63-3027(1)(h), Idaho Code
01.
In General. The following applies the foregoing principles for purposes of determining whether
particular income is apportionable or nonapportionable income.
(4-6-23)
02.
Rent From Real and Tangible Personal Property. Rental income from real and tangible property
is apportionable income if the property for which the rental income was received is or was used in the taxpayer's
trade or business and, therefore, is includable in the property factor under Rule 465 of these rules.
(4-6-23)
03.
Gains or Losses from Sales of Assets. Gain or loss from the sale, exchange or other disposition of
real property or of tangible or intangible personal property is apportionable income if the property while owned by
the taxpayer was used in, or was otherwise included in the property factor of the taxpayer's trade or business.
However, if the property was used to produce nonapportionable income, the gain or loss is nonapportionable income.
(4-6-23)
04.
Interest Income. Interest income from an intangible is apportionable income if the intangible
arises out of or was created in the regular course of the taxpayer's trade or business operations or if the purpose for
acquiring and holding the intangible is an integral, functional, or operative component of the taxpayer's trade or
business operations, or otherwise materially contributes to the production of apportionable income of the trade or
business operations.
(4-6-23)
05.
Dividends. Dividends from stock are apportionable income if the stock arises out of or was
acquired in the regular course of the taxpayer's trade or business operations or where the purpose of acquiring and
holding the stock is an integral, functional, or operative component of the taxpayer's trade or business operations, or
otherwise materially contributes to the production of apportionable income of the trade or business operations.
(4-6-23)
06.
Patent and Copyright Royalties. Royalties from patents and copyrights are apportionable income
if the patent or copyright arises out of or was created in the regular course of the taxpayer's trade or business
operations or if the purpose for acquiring and holding the patent or copyright is an integral, functional, operative
component of the taxpayer's trade or business operations, or otherwise materially contributes to the production of
apportionable income of the trade or business operations.
(4-6-23)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 340
Page 54