reglab/statecodes huggingface dataset:
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0700 - APPORTIONABLE AND NONAPPORTIONABLE INCOME › Section 05C .0701 - DIVISION OF INCOME: IN GENERAL

Current through Register Vol. 39, No. 2, July 15, 2024
(a) When a taxpayer has income from sources
											  within this state as well as income from sources outside this state, the division of income and the resulting
											  determination of the portion of the taxpayer's entire net income which has its source in this state shall be
											  determined pursuant to the allocation and apportionment provisions set forth in
											  G.S.
											  105-130.4 and these Rules. The taxpayer shall determine which portion of
											  its entire net income constitutes "apportionable income" and which portion constitutes "nonapportionable
											  income". The various items of nonapportionable income shall be directly allocated to specific jurisdictions
											  pursuant to the provisions of Subsections (d) to (h) of
											  G.S.
											  105-130.4. The apportionable income of the taxpayer other than public
											  utilities and excluded corporations shall be divided between the jurisdictions in which the business is
											  conducted pursuant to the property, payroll and sales apportionment factors set forth in Subsections (i) to
											  (l) of G.S.
											  105-130.4. The sum of the items of nonapportionable income directly
											  allocated to this state, plus the amount of apportionable income attributable to this state by the
											  apportionment formula shall constitute the amount of the taxpayer's entire net income which is subject to tax
											  under the income tax laws of this state.
(b) The taxpayer shall
											  classify income as apportionable or nonapportionable income on a consistent basis. In the event the taxpayer
											  is not consistent in reporting, it shall disclose in its return to this state the nature and extent of the
											  inconsistency.
(c) The word "apportionment" refers to the
											  division of net income between jurisdictions by the use of a formula containing apportionment factors, and
											  the word "allocation" refers to the assignment of net income to a particular jurisdiction.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005; January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0700 - APPORTIONABLE AND NONAPPORTIONABLE INCOME › Section 05C .0702 - REPEALED - BUSINESS AND NONBUSINESS INCOME DEFINED

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994;
Repealed Eff. July 1, 2000.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0700 - APPORTIONABLE AND NONAPPORTIONABLE INCOME › Section 05C .0703 - REPEALED - BUSINESS AND NONBUSINESS INCOME

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262.
Eff. February 1, 1976;
Amended
													 Eff. August 1, 2002; July 1, 2000; July 1, 1999; January 1, 1994; April 1, 1991; October 31,
													 1981;
Repealed Eff. August 1, 2003.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0700 - APPORTIONABLE AND NONAPPORTIONABLE INCOME › Section 05C .0704 - PRORATION OF DEDUCTIONS

Current through Register Vol. 39, No. 2, July 15, 2024
Any allowable deduction that is applicable both to apportionable and
													 nonapportionable income or to more than one "trade or business" of the taxpayer shall be prorated to those
													 classes of income or trades or businesses in determining income subject to tax. The taxpayer shall be
													 consistent in the proration of such deduction or deductions in filing returns under these
													 Rules.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005; January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0800 - PROPERTY FACTOR › Section 05C .0801 - IN GENERAL

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The property factor as provided in
											  G.S.
											  105-130.4 shall include all real and tangible personal property owned or
											  rented and used during the income year to produce apportionable income. The term "real and tangible personal
											  property" includes land, buildings, machinery, stocks of goods, equipment, and other real and tangible
											  personal property used in connection with the production of apportionable income but does not include coin or
											  currency.
(b) Property used in connection with the production of
											  nonapportionable income that is allocated in accordance with Subsection (c) to (h) of
											  G.S.
											  105-130.4 shall be excluded from the factor.
(c) Property used in connection with the production of both apportionable
											  and nonapportionable income shall be included in the factor only to the extent the property was used in
											  connection with the production of apportionable income.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005; January 1, 1994;
Readopted Eff. May 1,
													 2018.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0800 - PROPERTY FACTOR › Section 05C .0802 - PROPERTY USED FOR THE PRODUCTION OF APPORTIONABLE INCOME

Current through Register Vol. 39, No. 2, July 15, 2024
Property shall be included in the property factor if it is actually
													 used during the income year for the production of apportionable income. Property held as reserves or standby
													 facilities or property held as a reserve source of materials shall be included in the factor. For example, a
													 plant temporarily idle or raw material reserves not currently being processed are includible in the factor.
													 Property or equipment under construction during the income year (except inventoriable goods in process) shall
													 be excluded from the factor until such property is actually used for the production of apportionable income.
													 If the property is partially used for the production of apportionable income while under construction, the
													 value of the property to the extent used shall be included in the property factor.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0800 - PROPERTY FACTOR › Section 05C .0803 - CONSISTENCY IN REPORTING

Current through Register Vol. 39, No. 2, July 15, 2024
The taxpayer shall be consistent in the valuation of property and in
													 excluding or including property in the property factor in filing returns with this state. In the event the
													 taxpayer is not consistent in its reporting, it shall disclose in its return to this state the nature and
													 extent of the inconsistency.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Pursuant to G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0800 - PROPERTY FACTOR › Section 05C .0804 - NUMERATOR

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Property in transit
											  between locations of the taxpayer to which it belongs shall be considered to be at the destination for
											  purposes of the property factor. Property in transit between a buyer and seller which is included by a
											  taxpayer in the denominator of its property factor in accordance with its regular accounting practices shall
											  be included in the numerator according to the state of destination.
(b) The value of mobile or movable property such as construction equipment,
											  trucks or leased electronic equipment which are located within and without this state during the income year
											  shall be determined for purposes of the numerator of the factor on the basis of total time within the state
											  during the income year. An automobile assigned to a traveling employee shall be included in the numerator of
											  the factor of the state to which the employee's compensation is assigned under the payroll factor or in the
											  numerator of the state in which the automobile is licensed.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0800 - PROPERTY FACTOR › Section 05C .0805 - VALUATION OF OWNED PROPERTY

Current through Register Vol. 39, No. 2, July 15, 2024
(a) In determining the property factor in
											  G.S.
											  105-130.4, property owned by the taxpayer shall be valued at its original
											  cost:
(1) "Original cost" of property which has a basis other than zero for
											  federal income tax purposes equals the basis of the property for federal income tax purposes at the time of
											  acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial
											  disposition thereof, by reason of sale, exchange, abandonment, or any other type of disposition.
(2) "Original cost" of property which has a zero basis for federal income
											  tax purposes shall equal the taxpayer's actual cost of the property at the time of acquisition; provided,
											  however, if the actual cost is unknown, the "original cost" shall equal the fair market value of the
											  property, or, at the option of the taxpayer, eight times the net annual rental rate as described in
											  G.S.
											  105-130.4(j)(2). The valuation method chosen by the
											  taxpayer must be used consistently thereafter.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0800 - PROPERTY FACTOR › Section 05C .0806-.0807

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0901 - REPEALED - IN GENERAL

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. November 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0902 - PAYROLL ACCOUNTING METHOD

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The total amount "paid" to employees is
											  determined upon the basis of the taxpayer's accounting method. If the taxpayer has adopted the accrual method
											  of accounting, all compensation properly accrued shall be deemed to have been paid. Not withstanding the
											  taxpayer's method of accounting, at the election of the taxpayer, compensation paid to employees may be
											  included in the payroll factor by use of the cash method if the taxpayer is required to report such
											  compensation under such method for unemployment compensation purposes.
(b) The taxpayer shall be consistent in the treatment of compensation paid
											  in filing returns with this state. In the event the taxpayer is not consistent in its reporting it shall
											  disclose in its return to this state the nature and extent of the inconsistency.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Pursuant to G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0903 - COMPENSATION

Current through Register Vol. 39, No. 2, July 15, 2024
Payments made to an independent contractor or any other person not
													 classifiable as an employee are excluded from the term "compensation" for purposes of
													 G.S.
													 105-130.4. Only amounts paid directly to employees are included in the
													 payroll factor. Amounts considered paid directly include the value of board, rent, housing, lodging and other
													 benefits or services furnished to employees by the taxpayer in return for personal services provided that
													 such amounts constitute income to the recipient under the Federal Internal Revenue Code. In the case of
													 employees not subject to the Federal Internal Revenue Code, e.g., those employed in foreign countries, the
													 determination of whether such benefits or services constitute income to the employees shall be made as though
													 such employees were subject to the Federal Internal Revenue Code.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0904 - REPEALED - THE TERM EMPLOYEE

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. November 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0905 - REPEALED - INCLUDE IN PAYROLL FACTOR

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0906 - DENOMINATOR OF PAYROLL FACTOR

Current through Register Vol. 39, No. 2, July 15, 2024
Except for compensation paid to general executive officers and
													 compensation paid in connection with nonapportionable income the denominator of the payroll factor is the
													 total compensation paid everywhere during the income year. Accordingly, compensation paid to employees whose
													 services are performed entirely in a state where the taxpayer is exempt from taxation, for example, by
													 Public Law 86-272, is
													 included in the denominator of the payroll factor.
Note: A taxpayer has employees in its state of legal domicile (State
													 A) and is taxable in State B. In addition the taxpayer has other employees whose services are performed
													 entirely in State C where the taxpayer is exempt from taxation by
													 Public Law 86-272. As to
													 these latter employees, the compensation will be assigned to State C where their services are performed (i.e.
													 included in the denominator only of the payroll factor) even though the taxpayer is not taxable in State
													 C.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005; October 31, 1981;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0907 - NUMERATOR OF PAYROLL FACTOR

Current through Register Vol. 39, No. 2, July 15, 2024
Except for compensation paid to general executive officers and
													 compensation paid in connection with nonapportionable income, for purposes of
													 G.S.
													 105-130.4, the numerator of the payroll factor is the total amount paid in
													 this State during the tax period by the taxpayer for compensation. In determining the payroll factor,
													 information used to file federal forms 941 and the North Carolina Tax and Wage Reports may be used if the
													 amounts can be reconciled to the amounts used for the payroll factor. If compensation paid to employees is
													 included in the payroll factor by use of the cash method of accounting or if the taxpayer is required to
													 report such compensation under such method for unemployment compensation purposes, it shall be presumed that
													 the total wages reported by the taxpayer to this State for unemployment compensation purposes constitutes
													 compensation paid in this State except for compensation excluded under
													 G.S.
													 105-130.4(k). The presumption may be overcome by
													 satisfactory evidence that an employee's compensation is not reportable to this State for unemployment
													 compensation purposes.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005; January 1, 1994; October 31, 1981;
Readopted Eff. May 1,
													 2018.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .0900 - PAYROLL FACTOR › Section 05C .0908 - CORPORATIONS UTILIZING COMMON PAYMASTER

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A parent corporation or any corporation serving as common paymaster for
											  payroll purposes shall eliminate all payroll amounts paid on behalf of controlled members for which it has
											  charged such member the exact cost and which does not meet the definition of compensation insofar as the
											  common paymaster is concerned from the numerator and denominator of its payroll factor computation. The
											  numerator and denominator of the payroll factor shall be determined in accordance with
											  G.S.
											  105-130.4 after elimination of the described amounts.
(b) A subsidiary or otherwise controlled corporation, which is a member of
											  or participant in a common paymaster plan for payroll purposes, shall include in its numerator and
											  denominator of the payroll factor computation amounts paid to its parent corporation or to another
											  corporation of the controlled group as reimbursement in whatever form and by whatever label for employee's
											  compensation as defined. The amounts paid by the subsidiary or controlled corporation includable in the
											  numerator and the denominator of the payroll factor shall be determined in accordance with
											  G.S.
											  105-130.4.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. November 1, 1991;
Amended
													 Eff. January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1001 - SALES MADE IN GENERAL BUSINESS OPERATIONS

Current through Register Vol. 39, No. 2, July 15, 2024
For purposes of
													 G.S.
													 105-130.4, `sales' by a taxpayer whose business activity consists of
													 manufacturing and selling or purchasing and reselling goods or products includes all gross receipts from the
													 sales of such goods or products (or other property of a kind which would properly be included in the
													 inventory of the taxpayer if on hand at the close of the taxable year) held by the taxpayer primarily for
													 sale to customers in the ordinary course of its trade or business. Gross receipts for this purpose means
													 gross sales, less returns and allowances, and includes all interest income, service charges, carrying charges
													 or time-price differential charges incidental to such sales. Federal and state excise taxes (including sales
													 taxes) shall be included as part of such receipts if such taxes are passed on to the buyer or included as
													 part of the selling price of the product.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1002 - SALES INCIDENTAL TO GENERAL BUSINESS OPERATIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The term "sales" also includes
											  gross receipts derived by a taxpayer from business transactions or activities which are incidental to its
											  principal business activity and which are includible in apportionable income. However, substantial amounts of
											  gross receipts arising from an incidental or occasional sale of a fixed asset used in connection with the
											  taxpayer's regular trade or business will be excluded from the sales factor since such sales constitute a
											  "casual sale" of property and the inclusion of such gross receipts will not fairly apportion to this state
											  the income derived by the taxpayer from its business activity in this state. Gross receipts from casual sales
											  are considered substantial if they cause the sales factor to be distorted. For example, gross receipts from
											  the sale of a factory or plant will be excluded from the sales factor.
(b) In including or excluding gross receipts, the taxpayer shall be
											  consistent in the treatment of such gross receipts in filing returns with this state. In the event the
											  taxpayer is not consistent in its reporting, it shall disclose in its return to this state the nature and
											  extent of the inconsistency.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1003 - SALES MADE IN OTHER TYPE OF BUSINESS ACTIVITY

Current through Register Vol. 39, No. 2, July 15, 2024
As applied to a taxpayer engaged in business activity other than the
													 manufacturing and selling or purchasing and reselling of property, "sales" includes the gross receipts as
													 defined in Rule .1001 of this Section (Sales Made In General Business Operations):
(1) If the business activity consists of providing services; such as the
											  operation of an advertising agency, or the performance of equipment service contracts or research and
											  development contracts, "sales" includes the gross receipts from the performance of such services including
											  fees, commissions, and similar items.
(2) In the case of cost
											  plus fixed fee contracts, such as the operation of a government-owned plant for a fee, gross receipts
											  includes the entire reimbursed cost, plus the fee.
(3) If the
											  business activity is the renting of real or tangible personal property, "sales" includes the gross receipts
											  from the rental, lease, or licensing the use of the property.
(4)
											  If the business activity is the sale, assignment, or licensing of intangible personal property such as
											  patents and copyrights, "sales" includes the gross receipts therefrom.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1004 - NUMERATOR

Current through Register Vol. 39, No. 2, July 15, 2024
The numerator of the sales factor will include the gross receipts
													 from sales which are attributable to this state, and includes all interest income, service charges, carrying
													 charges, or time-price differential charges incidental to such sales regardless of the place where the
													 accounting records are maintained or the location of the contract or other evidence of
													 indebtedness.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. October 31, 1981;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1005 - WHAT SALES OF TANGIBLE PERSONAL PROPERTY ARE IN THIS STATE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Gross receipts from the
											  sales of tangible personal property are in this state if the property is delivered or shipped to a purchaser
											  within this state regardless of the f.o.b. point or other conditions of sale.
(b) Property shall be deemed to be delivered or shipped to a purchaser
											  within this state if the recipient is located in this state, even though the property is ordered from outside
											  this state.
(c) Property is delivered or shipped to a purchaser
											  within this state if the shipment terminates in this state, even though the property is subsequently
											  transferred by the purchaser to another state.
(d) The term
											  "purchaser within this state" shall include the ultimate recipient of the property if the taxpayer in this
											  state, at the designation of the purchaser, delivers to or has the property shipped to the ultimate recipient
											  within this state.
(e) When property being shipped by a seller
											  from the state of origin to consignee in another state is diverted while enroute to a purchaser in this state
											  the sales are in this state.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. October 31, 1981;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1006 - SALES FACTOR: SALES TO UNITED STATES GOVERNMENT

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For the purposes of
											  G.S.
											  105-130.4, gross receipts from the sales of tangible personal property to
											  the United States Government are in this state if the property is shipped to or received or accepted by the
											  United States Government in this state. For the purpose of this Rule, only sales for which the United States
											  Government makes direct payment to the seller pursuant to the terms of its contract constitute sales to the
											  United States Government. Thus, sales by a subcontractor to the prime contractor, the party to the contract
											  with the United States Government, do not constitute sales to the United States Government.
(b) When the United States Government is the purchaser of property which
											  remains in the possession of the taxpayer in this state for further processing under another contract, or for
											  other reasons, "shipment" is deemed to be made at the time of acceptance by the United States
											  Government.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994; October 31, 1981;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1000 - SALES FACTOR › Section 05C .1007 - REPEALED - NUMERATOR: OTHER RECEIPTS CONSTITUTING BUSINESS INCOME

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1100 - PUBLIC UTILITIES AND EXCLUDED CORPORATIONS APPORTIONMENT FACTORS › Section 05C .1101-.1105

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1200 - DEDUCTION OF CONTRIBUTIONS › Section 05C .1201-.1206

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.9;
													 105-202;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1300 - RAPID AMORTIZATION OF AIR OR WATER POLLUTION ABATEMENT FACILITIES › Section 05C .1301-.1302

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.10;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1400 - AMORTIZATION OF BOND PREMIUMS › Section 05C .1401 - PRELIMINARY STATEMENT

Current through Register Vol. 39, No. 2, July 15, 2024
If a corporation purchases a bond at more than its face value, the
													 amount of premium paid may be amortized over the life of the bond. However, the allowance of a deduction
													 against net income for amortization of the premium paid depends upon the type of bond purchased by the
													 corporation. For example:
(1) Amortization of premiums on tax-exempt
											  bonds by a corporation is mandatory with no deduction allowed in computing state net income.
(2) A corporation may at its option amortize the amount of premiums paid on
											  taxable bonds over the life of the bonds. If the premium is not amortized by the corporation, it will
											  constitute part of the basis of the bond in determining gain or loss at maturity of sale.
(3) For state income tax purposes, obligations of the United States or its
											  possessions and obligations of the State of North Carolina or any of its subdivisions are tax-exempt.
											  Interest income received by a corporation on such obligations is not taxable; however, a corporation must
											  include in its computation of state net income any gain or loss realized on the disposal of such
											  obligations.
(4) Premiums paid on all bonds acquired prior to
											  January 1, 1963 cannot be amortized but constitute a part of the cost basis of the bonds in determining gain
											  or loss when the bonds are sold.
Authority
													 G.S.
													 105-130.5;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1400 - AMORTIZATION OF BOND PREMIUMS › Section 05C .1402 - TAX EXEMPT BONDS

Current through Register Vol. 39, No. 2, July 15, 2024
The amount of premium paid upon the purchase of a tax-exempt bond is
													 amortized over the life of the bond. Amortization for the taxable year is accomplished by reducing the
													 original cost of the bond by a portion of the premium paid, with no deduction against net income for the
													 year. Therefore, when the bond is sold or otherwise disposed of, the basis for determining gain or loss will
													 always be original cost less the amount of premium amortized for book purposes through the year of
													 disposal.
Authority
													 G.S.
													 105-130.5;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. October 31, 1981;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1400 - AMORTIZATION OF BOND PREMIUMS › Section 05C .1403 - TAXABLE BONDS

Current through Register Vol. 39, No. 2, July 15, 2024
A portion of the premium paid upon the purchase of a taxable bond
													 may be deducted in the taxable year only if an adjustment is made to the basis of the bond. If a taxpayer
													 elects to amortize the premium, the basis for determining gain or loss will always be original cost less the
													 amount of premium amortized and deducted in its tax returns through the year of disposal. Otherwise, the
													 basis of a taxable bond for determining gain or loss will always be the entire amount paid for the
													 bond.
Authority
													 G.S.
													 105-130.5;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. October 31, 1981;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1400 - AMORTIZATION OF BOND PREMIUMS › Section 05C .1404 - DEFINITION OF BOND

Current through Register Vol. 39, No. 2, July 15, 2024
The term "bond" means any bond, debenture, note or certificate or
													 other evidence of indebtedness issued by any corporation and bearing interest and includes any like
													 obligation issued by any government or political subdivision thereof.
Authority
													 G.S.
													 105-130.5;
													 105-262;
Eff. February 1, 1976;
Pursuant to G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1500 - NET ECONOMIC LOSS CARRY OVER › Section 05C .1501-.1505

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.8;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1500 - NET ECONOMIC LOSS CARRY OVER › Section 05C .1506 - CORPORATIONS APPORTIONING THEIR NET INCOME

Current through Register Vol. 39, No. 2, July 15, 2024
A corporation required to apportion its net income or net loss under
													 G.S.
													 105-130.4 may carry forward only a portion of its State net loss. For
													 example, a corporation apportioning 50 percent of its net income or loss to North Carolina in a particular
													 year in which it sustains a total State net loss of one thousand dollars ($1,000.00) may carry forward only
													 five hundred dollars ($500.00) to a subsequent year.
Authority
													 G.S.
													 105-130.8;
													 105-130.8A;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005;
Readopted Eff. May 1, 2018.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1500 - NET ECONOMIC LOSS CARRY OVER › Section 05C .1507 - EXPIRED - CORPORATION SUSTAINING LOSS ENTITLED TO DEDUCTION

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.8;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994; October 31, 1981; April 1, 1979;
Expired Eff. September 1, 2017 pursuant to
													 G.S.
													 150B-21.3A.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1600 - TRANSACTIONS BETWEEN AFFILIATED CORPORATIONS › Section 05C .1601-.1606

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.6;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1700 - PARTNERSHIPS AND THE CORPORATE PARTNER › Section 05C .1701 - REPORTING PARTNERSHIP NET INCOME

Current through Register Vol. 39, No. 2, July 15, 2024
A corporation which is a member of a partnership or joint venture
													 doing business in North Carolina is subject to North Carolina income tax and is required to include in the
													 total net income subject to apportionment and allocation its share of the partnership's net income or net
													 loss to the same extent required for federal income tax purposes.
Authority
													 G.S.
													 105-130.3;
													 105-262;
Eff. February 1, 1976;
Pursuant to G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1700 - PARTNERSHIPS AND THE CORPORATE PARTNER › Section 05C .1702 - APPORTIONABLE INCOME OR NONAPPORTIONABLE INCOME

Current through Register Vol. 39, No. 2, July 15, 2024
Income shall be classified as nonapportionable income where the
													 corporate partner limits its connection to the partnership to the investment of funds or property and does
													 not regularly or materially participate in the day-to-day operation of the partnership. Where the business of
													 the partnership is directly or integrally related to the business of the corporate partner, the corporate
													 partner's share of the partnership net income is classified as apportionable income. When classified as
													 apportionable income, the corporate partner's apportionment factors shall include its proportionate share of
													 the partnership's property, payroll, and sales. If the income is classified as nonapportionable income, it
													 shall be included in the corporate partner's net taxable income and allocated in accordance with the
													 allocation provisions of G.S.
													 105-130.4.
Authority
													 G.S.
													 105-130.4;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 2005; January 1, 1994; October 31, 1981;
Readopted Eff. May 1,
													 2018.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1800 - COMPUTING TAXABLE PERCENTAGES ON DIVIDENDS › Section 05C .1801-.1806

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.7;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1994; April 1, 1991;
Repealed Eff. December 1,
													 1997.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1900 - FILING OF RETURNS AND PAYMENT OF TAXES › Section 05C .1901-.1903

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-130.17;
													 105-130.19;
													 105-262;
													 105-263;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1978;
Repealed Eff. October 31, 1981.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1900 - FILING OF RETURNS AND PAYMENT OF TAXES › Section 05C .1904 - OVERPAYMENTS APPLIED TO NEXT YEAR

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A corporation may elect to have an income tax refund applied to
											  estimated income tax for the following tax year. A return reflecting an election to apply a refund to
											  estimated tax for the following year must be filed by the last allowable date for making estimated tax
											  payments for that year for the election to be valid.
(b) If a
											  corporation makes a valid election, that corporation may not revoke the election after the return has been
											  filed in order to have the amount refunded or applied in any other manner, such as an offset against any
											  subsequently determined tax liability.
Authority
													 G.S.
													 105-163.39;
													 105-163.40;
													 105-262;
Eff. March 1, 2006;
Pursuant
													 to G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .1900 - FILING OF RETURNS AND PAYMENT OF TAXES › Section 05C .1905 - ELECTRONIC FILING OF CORPORATION INCOME TAX RETURNS

Current through Register Vol. 39, No. 2, July 15, 2024
The Department of Revenue participates in the Federal/State
													 Electronic Filing Program and accepts corporation income tax returns filed under that
													 program.
Authority
													 G.S.
													 105-262;
Eff. March 1, 2006;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff.
													 August 19, 2017.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .2000 - EXTENSION OF TIME FOR FILING RETURN › Section 05C .2001-.2002

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-263;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. November 1, 1987; October 23, 1977;
Repealed Eff. April 1,
													 1991.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 05 - CORPORATE FRANCHISE, INCOME, AND INSURANCE TAXES › Subchapter C - CORPORATE INCOME TAX › Section .2000 - EXTENSION OF TIME FOR FILING RETURN › Section 05C .2003 - REPEALED - INTEREST AND PENALTIES

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-236;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. November 2, 1992; October 23, 1977;
Repealed Eff. July 1,
													 2000.