Idaho Admin. Code r. 35.01.01.268 - IDAHO SOURCE INCOME OF NONRESIDENT AND PART-YEAR RESIDENT INDIVIDUALS -SUSPENDED LOSSES FROM PASS-THROUGH ENTITIES

Section 63-3026A, Idaho Code

01. In General. A nonresident individual's suspended losses from a pass-through entity are included in Idaho taxable income in the year included in federal taxable income only to the extent the losses were from an Idaho source in the year incurred. (4-6-23)

a. Suspended Loss. For purposes of this rule, a suspended loss is a loss required to be carried over to a succeeding taxable year due to Section 465(a), Section 704(d), or Section 1366(d) of the Internal Revenue Code. (4-6-23)

b. Idaho Source. A suspended loss is from an Idaho source in the year incurred to the extent provided by Section 63-3026A, Idaho Code, and related rules. For purposes of this rule, the Idaho source portion of a suspended business loss subject to apportionment is determined by multiplying the loss by the Idaho apportionment factor of the pass-through entity in the year the loss was incurred. The Idaho apportionment factor is determined pursuant to Section 63-3027, Idaho Code, and related rules. (4-6-23)

c. Nonbusiness Losses. A suspended nonbusiness loss is from an Idaho source in the year incurred to the extent the loss is allocable to Idaho pursuant to Section 63-3027, Idaho Code and Rule 263.02 of these rules. (4-6-23)

d. Year Loss Incurred. For purposes of this rule, "year incurred" means the tax year the loss was first suspended. (4-6-23)

02. Losses from Multiple Years. For purposes of this rule, losses from a pass-through entity are considered used in the order incurred. (4-6-23)

03. Examples. Available at Income Tax Rules Examples. (4-6-23)

Notes

Idaho Admin. Code r. 35.01.01.268