Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.325 - DEFINITIONS FOR PURPOSES OF MULTISTATE RULES

Current through August 31, 2023
Section
				63-3027, Idaho Code. For purposes
				of computing the Idaho taxable income of a multistate corporation, the
				following definitions apply: (4-6-23)
01.
Affiliated Corporation and
			 Affiliated Group
. An affiliated corporation is a corporation that is a
			 member of a commonly controlled group of which the taxpayer is also a member.
			 The commonly controlled group is referred to as an affiliated group. Although
			 Idaho generally follows federal tax principles and terminology, Idaho's use of
			 the terms affiliated corporation and affiliated group means a corporation or
			 corporations with over fifty percent (50%) of its voting stock directly or
			 indirectly owned or controlled by a common owner or owners. For information on
			 what constitutes common control, see Rule
			 344 of these rules.
			 (4-6-23)
02.
Allocation
. Allocation refers to the assignment of
			 nonapportionable income to a particular state. (4-6-23)
03.
Apportionment
. Apportionment
			 refers to the division of apportionable income between states in which the
			 business is conducted by the use of a formula containing apportionment factors.
			 (4-6-23)
04.
Business
			 Activity
. Business activity refers to the transactions and activity
			 occurring in the regular course of a particular trade or business of a taxpayer
			 or to the acquisition, management, and disposition of property that constitute
			 integral parts of the taxpayer's regular trade or business operations.
			 (4-6-23)
05.
Combined
			 Group
. Combined group means the group of corporations that comprise a
			 unitary business and are includable in a combined report pursuant to Section
			 63-3027(22)  or
			 63-3027B, Idaho Code, if the
			 water's edge election is made. (4-6-23)
06.
Combined Report
. Combined
			 report refers to the computational filing method to be used by a unitary
			 business which is conducted by a group of corporations wherever incorporated
			 rather than a single corporation. (4-6-23)
07.
Gross Receipts
. (4-6-23)
a. Gross receipts are the gross amounts
			 realized, (the sum of money and the fair market value of other property or
			 services received) on the sale or exchange of property, the performance of
			 services, or the use of property or capital (including rents, royalties,
			 interest and dividends) in a transaction that produces apportionable income, in
			 which the income or loss is recognized (or would be recognized if the
			 transaction were in the United States) under the Internal Revenue Code. Amounts
			 realized on the sale or exchange of property are not reduced for the cost of
			 goods sold or the basis of property sold. Gross receipts, even if apportionable
			 income, do not include such items as, for example: (4-6-23)
i. Repayment, maturity, or redemption of the
			 principal of a loan, bond, or mutual fund or certificate of deposit or similar
			 marketable instrument; (4-6-23)
ii.
			 The principal amount received under a repurchase agreement or other transaction
			 properly characterized as a loan; (4-6-23)
iii. Proceeds from issuance of the taxpayer's
			 own stock or from sale of treasury stock; (4-6-23)
iv. Damages and other amounts received as the
			 result of litigation; (4-6-23)
v.
			 Property acquired by an agent on behalf of another; (4-6-23)
vi. Tax refunds and other tax benefit
			 recoveries; (4-6-23)
vii. Pension
			 reversions; (4-6-23)
viii.
			 Contributions to capital; (4-6-23)
ix. Income from forgiveness of indebtedness;
			 or (4-6-23)
x. Amounts realized
			 from exchanges of inventory that are not recognized by the Internal Revenue
			 Code. (4-6-23)