IDAPA 35.01.01.465 — PROPERTY FACTOR: PROPERTY USED FOR THE PRODUCTION OF APPORTIONABLE

INCOME (RULE 465).
Section 63-3027(16)(a), Idaho Code
01.
In General.
(4-6-23)
a.
Property is to be included in the property factor if it is used, is available for use, or capable of being
used during the taxable year in the regular course of the taxpayer's trade or business. Property held as reserves or
standby facilities or property held as a reserve source of materials is to be included in the factor. For example, a plant
temporarily idle or raw material reserves not currently being processed are includable in the factor.
(4-6-23)
b.
Property or equipment under construction during the taxable year, except inventoriable goods in
process, is to be excluded from the factor until the property is used in the regular course of the taxpayer's trade or
business.
(4-6-23)
c.
If the property is partially used in the regular course of the taxpayer's trade or business while under
construction, the value of the property is to be included in the property factor to the extent used.
(4-6-23)
d.
Property used in the regular course of the taxpayer's trade or business is to remain in the property
factor until it is permanently withdrawn by an identifiable event such as its sale, abandonment, or any event or
circumstance that renders the property incapable of being used in the regular course of the taxpayer's trade or
business.
(4-6-23)
02.
Examples.
(4-6-23)
a.
A taxpayer closed its manufacturing plant in State X and held the property for sale. The property
remained vacant until its sale one (1) year later. The value of the manufacturing plant is included in the property
factor until the plant is sold.
(4-6-23)
b.
Assume the same facts as in Subsection 465.02.a., except the property was rented until the plant
was sold. The plant is included in the property factor until the plant is sold.
(4-6-23)