Section 016. Idaho Gross Income (Rule 016)

Sections 63-3011 and 63-3030, Idaho Code 01. In General. Gross income means all income from whatever source derived, unless specificall y excluded by the Internal Revenue Code. (4-6-23) 02. Gross Income from Pass-Through Entities. Gross income includes an owner’s share of a pass- through entity’s gross income pursuant to sections 702(c) and 1366(c) of the Internal Revenue Code, and federa l Treasury Regulation Section 1.61-13 (citing Part I, Subchapter J, Chapter 1 of the Internal Revenue Code). (4-6-23) 03. Gross Income from Idaho Sources. Gross income from Idaho sources is that portion of total gross income derived from or related to sources within Idaho. Income derived from or related to sources within Idaho i s determined pursuant to this rule and Rules 263 through 286 of these rules. (4-6-23) 04. Idaho Source Gross Income from a Pass-Through Entity. (4-6-23) a. Partnership. The amount of a partner’s gross income from Idaho sources is: (4-6-23) i. The partner’s distributive share of partnership gross income included in the partnership’ s apportionable income multiplied by the Idaho apportionment factor of the partnership; and (4-6-23) ii. The partner’s distributive share of gross income allocated to Idaho. (4-6-23) b. S Corporation. The amount of a shareholder’s gross income from Idaho sources is: (4-6-23) i. The shareholder’s pro rata share of the S corporation gross income included in the S corporation’s apportionable income multiplied by the Idaho apportionment factor of the S corporation; and (4-6-23) ii. The shareholder’s pro rata share of gross income allocated to Idaho. (4-6-23) c. Trust or Estate. The Idaho source portion of the income that constitutes gross income pursuant t o federal Treasury Regulation Section 1.61-13 and Part I, Subchapter J, Chapter 1 of the Internal Revenue Code, is th e amount of such income that would be Idaho source if received directly by the individual. (4-6-23) 05. Examples. Available at Income Tax Rules Examples. (4-6-23) 017

Idaho. (4-6-23) c. Trust or Estate. The Idaho source portion of the income that constitutes gross income pursuant t o federal Treasury Regulation Section 1.61-13 and Part I, Subchapter J, Chapter 1 of the Internal Revenue Code, is th e amount of such income that would be Idaho source if received directly by the individual. (4-6-23) 05. Examples. Available at Income Tax Rules Examples. (4-6-23) 017. TREATMENT OF THE SECTION 965 OF THE INTERNAL REVENUE CODE INCREASE IN SUBPART F INCOME AND RELATED EXCLUSIONS (RULE 017). Section 63-3002, Idaho Code Subpart F income as defined in Section 952, Internal Revenue Code, is gross income under Section 951(a), Interna l Revenue Code, and included in a taxpayer’s taxable income under the Internal Revenue Code. Idaho taxpayers mus t include the Section 965, Internal Revenue Code, increase in their subpart F income (Section 965(a) reduced b y Section 965(c), Internal Revenue Code), when computing their Idaho taxable income regardless of how such incom e is reported to the Internal Revenue Service on the federal income tax form. (4-6-23) 018. -- 024. (RESERVED)