Idaho Admin. Code r. 35.01.01.122 - ADJUSTMENTS TO TAXABLE INCOME - SUBTRACTIONS AVAILABLE ONLY TO CORPORATIONS

Sections 63-3022 and 41-3821, Idaho Code

01. Stock Insurance Subsidiary Dividends or Distributions. (4-6-23)

a. As provided in Section 41-3821, Idaho Code, a mutual insurance holding company or an intermediate holding company is to subtract the amount received as a dividend or distribution from a stock insurance subsidiary. (4-6-23)

b. The deduction allowed by Section 41-3821, Idaho Code, is not allowed if the stock insurance subsidiary's Idaho premium tax liability for the preceding taxable year is less than the stock insurance subsidiary would have paid in Idaho income tax had it been subject to Idaho income taxation for that year. The Idaho premium tax liability is the amount of total premium taxes less total premium tax credits allowed. The Idaho income tax it would have paid is to be computed as provided by Section 63-3027, Idaho Code, net of any applicable income tax credits. (4-6-23)

c. The taxpayer claiming the deduction is to include in its Idaho income tax return for the year the deduction is claimed information that it is entitled to the deduction. Such information is to include the amount of the stock insurance subsidiary's Idaho premium tax for the preceding taxable year and the amount of Idaho income tax it would have paid for such year. (4-6-23)

Notes

Idaho Admin. Code r. 35.01.01.122