Section 100.3300 Allocation and Apportionment of Base Income (IITA Section 304)

Section 100

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 100 INCOME TAX

SECTION 100.3300 ALLOCATION AND APPORTIONMENT OF BASE INCOME (IITA SECTION 304)

Section 100.3300  Allocation

and Apportionment of Base Income (IITA Section 304)

a)         Residents. All items of income or deduction which are taken

into account in the computation of base income for the taxable year by a resident

of Illinois are allocated to Illinois under IITA Section 301(a) and enter into

the computation of such person's net income under IITA Section 202. For the definition

of a resident see IITA Section 1501(a)(20) and Section 100.3020 of this Part.

b)         Other

persons

1)         In general. In order to compute net income under IITA Section 202

of persons other than residents of Illinois, it is necessary to determine that

portion of each item of income and deduction taken into account in the

computation of base income for the taxable year which is allocable to Illinois.

In general, the allocation of items of compensation and of items of deduction

directly allocable thereto is governed by IITA Section 302 (see Section

100.3120 of this Part). The allocation of certain specified items of income, to

the extent such items constitute nonbusiness income, together with items of

deduction directly allocable thereto, is governed by IITA Section 303 (see Section

100.3220 of this Part). The allocation and apportionment of business income is governed

by IITA Section 304 (see Sections 100.3310, 100.3350, 100.3360 and 100.3370 of

this Part.) An item of income or deduction specifically allocated or

apportioned pursuant to one of the foregoing sections is allocated to Illinois

and enters into the computation of net income of a person other than a resident

only to the extent provided by such allocation or apportionment section. All

other items of income and deductions are allocated under IITA Section

301(b)(2).

2)         Unspecified items

of income or deduction specifically allocated or

apportioned pursuant to one of the foregoing sections is allocated to Illinois

and enters into the computation of net income of a person other than a resident

only to the extent provided by such allocation or apportionment section. All

other items of income and deductions are allocated under IITA Section

301(b)(2).

2)         Unspecified items. An item of income or deduction which is

taken into account in the computation of base income for the taxable year by a person

other than a resident of Illinois, and which is not otherwise specifically

allocated or apportioned, in the case of an individual, trust or estate, is not

allocated to Illinois. In the case of a corporation, such items are allocated

to Illinois if the corporation has its commercial domicile in Illinois at the

time such item is paid, incurred or accrued. For the definition of commercial domicile,

see IITA Section 1501(a)(2) and Section 100.3210 of this Part. Examples of

items of income which (to the extent such items constitute nonbusiness income)

are not otherwise specifically allocated or apportioned are interest,

dividends, items of income taken into account under the provisions of 26 USC 401

through 425, benefit payments received by a beneficiary of a supplemental

unemployment benefit trust which is referred to in 26 USC 501(c)(17) and royalties

from intangible personal property (other than patent and copyright royalties).