Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart M - BUSINESS INCOME OF PERSONS OTHER THAN RESIDENTS › Section 100.3300 - Allocation and Apportionment of Base Income (IITA Section 304)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Residents. All
				items of income or deduction which are taken into account in the computation of
				base income for the taxable year by a resident of Illinois are allocated to
				Illinois under IITA Section 301(a) and enter into the computation of such
				person's net income under IITA Section 202. For the definition of a resident
				see IITA Section 1501(a)(20) and Section
				100.3020
				of this Part.
b) Other persons
1) In general. In order to compute net income
				under IITA Section 202 of persons other than residents of Illinois, it is
				necessary to determine that portion of each item of income and deduction taken
				into account in the computation of base income for the taxable year which is
				allocable to Illinois. In general, the allocation of items of compensation and
				of items of deduction directly allocable thereto is governed by IITA Section
				302 (see Section
				100.3120
				of this Part). The allocation of certain specified items of income, to the
				extent such items constitute nonbusiness income, together with items of
				deduction directly allocable thereto, is governed by IITA Section 303 (see
				Section
				100.3220
				of this Part). The allocation and apportionment of business income is governed
				by IITA Section 304 (see Sections
				100.3310,
				100.3350,
				100.3360
				and
				100.3370
				of this Part.) An item of income or deduction specifically allocated or
				apportioned pursuant to one of the foregoing sections is allocated to Illinois
				and enters into the computation of net income of a person other than a resident
				only to the extent provided by such allocation or apportionment section. All
				other items of income and deductions are allocated under IITA Section
				301(b)(2).
2) Unspecified items. An
				item of income or deduction which is taken into account in the computation of
				base income for the taxable year by a person other than a resident of Illinois,
				and which is not otherwise specifically allocated or apportioned, in the case
				of an individual, trust or estate, is not allocated to Illinois. In the case of
				a corporation, such items are allocated to Illinois if the corporation has its
				commercial domicile in Illinois at the time such item is paid, incurred or
				accrued. For the definition of commercial domicile, see IITA Section 1501(a)(2)
				and Section
				100.3210
				of this Part. Examples of items of income which (to the extent such items
				constitute nonbusiness income) are not otherwise specifically allocated or
				apportioned are interest, dividends, items of income taken into account under
				the provisions of
				26 USC
				401 through
				425, benefit payments
				received by a beneficiary of a supplemental unemployment benefit trust which is
				referred to in
				26 USC
				501(c)(17) and royalties
				from intangible personal property (other than patent and copyright
				royalties).