Section 35.01.01.331 - APPORTIONABLE AND NONAPPORTIONABLE INCOME DEFINED: APPORTIONABLE INCOMESection 63-3027(a)(1), Idaho Code
01.In General. Apportionable income means income of any type or class and from any activity that meets the "transactional test" described in Rule 332 of these rules, or the "functional test" described in Rule 333 of these rules. The classification of income by the labels occasionally used, such as manufacturing income, compensation for services, sales income, interest, dividends, rents, royalties, gains, operating income, and nonoperating income, is of no aid in determining whether income is apportionable or nonapportionable income.02.Terms Used in Definition of Apportionable Income and in Application of Definition. As used in the definition of apportionable income and in the application of the definition. a. "Trade or business" means the unitary business of the taxpayer, part of which is conducted within Idaho.b. "To contribute materially" includes, without limitation, "to be used operationally in the taxpayer's trade or business." Whether property materially contributes is not determined by reference to the property's value or percentage of use. If an item of property materially contributes to the taxpayer's trade or business, the attributes, rights or components of that property are also operationally used in that business. However, property that is held for mere financial betterment is not operationally used in the taxpayer's trade or business.Idaho Admin. Code r. 35.01.01.331