Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 825 - TRIBAL MEMBER INCOME FROM SOURCES ON TRIBAL LAND › Section 125-825-04 - Income attributable to tribal land

Current through 2024-29, July 17, 2024
For purposes of subsection .03(B) above the following
				  apply:
A.
Generally.
Income received by a tribal member is attributable to tribal land when the
				income is derived from or connected with sources on tribal land. The itemized
				and standard deductions, credits, income modifications, and personal exemptions
				apply to tribal members in accordance with Maine law. A loss is sourced to
				tribal land in the same manner that a gain is sourced to tribal land.
B.
Compensation for personal services
				derived from or connected with sources on tribal land.
Personal services
				compensation derived from or connected with sources on tribal land is the
				income derived from personal services performed on tribal land. Compensation
				includes, but is not limited to, wages, salaries, taxable benefits such as
				annual and sick leave, commissions, fees, and payment in kind. Personal
				services compensation attributable to tribal land includes sick time and
				vacation time earned while working on tribal land. Compensation for personal
				services is includable for purposes of this subsection unless it is excluded
				from "gross income" under the Internal Revenue Code. For example, amounts
				withheld by an employer for federal and state income taxes, FICA contributions,
				medical insurance plans, or other similar payroll deductions are considered
				compensation for personal services.
Unemployment compensation received by a tribal member that is
				  derived from employment on tribal land is attributable to tribal land.
Generally, incentive stock options, nonstatutory stock
				  options, and employee stock purchase plans are compensation for personal
				  services in the amount that represents the fair market value of the stock on
				  the date exercised (i.e., when the employee has purchased the stock) that
				  exceeds the option price of the stock at the time the option is granted. Income
				  from stock option plans reported as capital gains on the federal income tax
				  return is, for purposes of this paragraph, compensation from personal services.
				  If the period between the grant of a stock option and the exercise of the
				  option straddles employment on and off tribal land, the amount attributable to
				  employment on tribal land must be determined in accordance with section .05(B)
				  below and the amount so determined is compensation derived from or connected
				  with sources on tribal land for the same taxable year that the income is
				  included in federal adjusted gross income.
C.
Income from a trade or
				business.
All income derived from or connected with the carrying on of a
				trade or business on tribal land is income sourced to tribal land. Generally, a
				tribal member has a trade or business if:
1.
				The tribal member, directly or through agents or employees or through a
				pass-through entity in which the tribal member is a shareholder, member, or
				partner, maintains or operates or shares in maintaining or operating a desk,
				room, office, shop, store, warehouse, factory, or any other place on tribal
				land where business affairs are systematically and regularly conducted;
				or
2. The tribal member, directly
				or through agents or employees or through a pass-through entity in which the
				tribal member is a shareholder, member, or partner, is present for business on
				tribal land on other than a systematic or regular basis and earns or derives
				gross income during the taxable year from contractual or sales-related
				activities.