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Idaho Free Printable Form 402, Individual Apportionment for Multistate Businesses and Instructions for 2020 Idaho Individual Apportionment for Multistate Businesses

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Individual Apportionment for Multistate Businesses
Form 402, Individual Apportionment for Multistate Businesses and Instructions

Form 402 Individual Apportionment for Multistate Businesses For the calendar year or fiscal year beginning , ending Names as shown on return Social Security number or EIN Total Property (At original cost) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Beginning of Year Idaho End of Year Beginning of Year End of Year Inventories ................................................................... Buildings ...................................................................... Machinery and equipment ........................................... Furniture and fixtures .................................................. Delivery equipment ..................................................... Land ............................................................................ Other assets (describe) ............................................... Less: Construction in progress .................................... Owned property. Add lines 1 through 7 less line 8 ...... Average owned property. See instructions ............................................. Rented property (capitalize @ 8 times the rents) ................................... Total owned and rented property. Add lines 10 and 11 ........................... Idaho owned and rented property. Add lines 10 and 11 ................................................................................ % 14. Idaho property percentage. Compute the percentage to four decimal places .............................................. Sales (Gross receipts) Total Idaho 15. Gross sales, less returns and allowances .......................................................................... 16. Sales delivered or shipped to Idaho purchasers: a. Shipped from outside Idaho .................................................................................................. b. Shipped from within Idaho .................................................................................................... 17. Sales shipped from Idaho to: a. The United States government ................................................................................... b. Purchasers in a state where the taxpayer was not subject to a net income tax or a tax based upon or measured by net income ........................................................ 18. 19. 20. 21. 22. 23. 24. 25. 26. Sales of services ................................................................................................................ Dividends ........................................................................................................................... Interest income subject to apportionment .......................................................................... Gross rents received .......................................................................................................... Gross royalties ................................................................................................................... Gross sales from Form 4797 and/or Schedule D .............................................................. Other Income ..................................................................................................................... Total gross receipts. Add lines 15 and 18 through 24 ........................................................ Idaho gross receipts. Add lines 16 through 24 .............................................................................................. % 27. Idaho sales percentage. Compute percentage to four decimal places ......................................................... % 28. Idaho sales percentage doubled. Multiply line 27 by 2. Utility companies see instructions .......................... Payroll (Wages, salaries, other employee compensation) 29. 30. 31. 32. 33. 34. Total Idaho Compensation of officers .................................................................................................... Salaries and wages ............................................................................................................ Labor included in cost of goods sold .................................................................................. Other .................................................................................................................................. Total wages and salaries. Add lines 29 through 32 ............................................................ Idaho wages and salaries. Add lines 29 through 32 ..................................................................................... 35. Idaho payroll percentage. Compute percentage to four decimal places ...................................................... % 36. Total percent. Add lines 14, 28 and 35. Utility companies add lines 14, 27 and 35 .................................... % 37. Idaho apportionment factor. Average percentage. See instructions ............................................................. % EFO00170 05-09-2019 Form 402 — Instructions Individual Apportionment for Multistate Businesses General Instructions If you’re a nonresident transacting business in Idaho and another state or country, your entire business income is subject to Idaho apportionment. The elements of the apportionment formula are the property, sales, and payroll factors of your trade or business. 2019 property, less the aggregate annual subrental rates paid by subtenants. Subrents aren’t deducted if they’re business income. Sales Factor The sales factor is double weighted for all taxpayers except electrical and telephone utilities. Electrical and telephone utilities use a single-weighted sales factor. Property Factor The property factor is a fraction. The numerator is the average value of real and tangible personal property owned or rented and used in Idaho during the tax year to produce business income. The denominator is the average value of all the real and tangible personal property you owned or rented and used during the tax year to produce business income. Property used in the production of nonbusiness income is excluded from the factor. The sales factor is a fraction. The numerator is the gross receipts derived during the year from transactions and activities attributable to Idaho in the regular course of your trade or business. The denominator is the total gross receipts derived during the tax year from transactions and activities everywhere in the regular course of your trade or business. Receipts derived from the production of nonbusiness income are excluded from the sales factor. Property is included in the factor if it is actually used or capable of being used during the tax year in the regular course of the trade or business of the taxpayer. Sales means all gross receipts derived from transactions and activities in the regular course of your trade or business. Gross receipts means gross sales, less returns and allowances. Gross receipts from sales of tangible personal property are assigned to Idaho if: For example, a plant temporarily idle, work-in-process, and raw material reserves not currently being processed are included in the property factor. Property under construction during the tax year, except inventoriable goods in process, is excluded from the property factor until the property is used or capable of being used in the regular course of business. Property you own is valued at its original cost. Original cost is the basis of the property for federal income tax purposes (prior to any federal adjustments) when it was acquired. Adjustments must be made for subsequent capital additions or improvements, special deductions or partial dispositions because of sale, exchange, abandonment, etc. Depreciation doesn’t reduce original cost. The average value of the property you own is computed by averaging the values at the beginning and end of the tax year. The Tax Commission may require or allow the averaging of monthly values to properly reflect the average values. Property rented is valued at eight times the net annual rental rate. The net annual rental rate for any item of rented property is total rents paid for the EIN00071 05-09-2019 • Property is delivered or shipped to a purchaser in Idaho regardless of F.O.B. point or other conditions of sales; or • Property is shipped from an office, store, warehouse, factory, or other place of storage in Idaho and the taxpayer isn’t taxable in the state of the purchaser (throwback sales) or the purchaser is the United States Government. Sales also include gross receipts from services and all other gross receipts such as interest, dividends, rents, royalties, gross receipts from the sale of property, and other income you derive in the regular course of your business. If gross receipts don’t fairly represent the extent of your business activity in Idaho, you may petition, or may be required, to use another method to obtain an equitable result. Income from services is attributable to Idaho to the extent the services are performed in Idaho. Payroll Factor The payroll factor is a fraction. The numerator is the compensation paid in Idaho during the tax year to produce business income. The denominator is the Page 1 of 3 Form 402 — Instructions (continued) total compensation paid during the tax year to produce business income. Compensation connected with the production of nonbusiness income is excluded from the payroll factor. The total amount paid to employees is determined on the basis of the taxpayer’s accounting method. Under the accrual method, all compensation properly accrued is deemed to have been paid. 2019 Carriers of Freight and Passengers If you’re in the business of transporting passengers, freight or mail by motor carrier, your apportionment factor should reflect the movement of your transportation equipment and personnel. This is done by including the transportation revenue, property and payroll in the Idaho numerators based on the percentage of miles traveled in Idaho to miles traveled everywhere. If you’re required to report the compensation under the cash method for unemployment compensation purposes, compensation paid to employees may be included in the payroll factor using the cash method. Other revenue, fixed property, and compensation of employees assigned to fixed locations are included in the factors based on the general apportionment rules. Compensation means wage, salaries, commissions and any other form of payment to employees for personal services. Payments made to an independent contractor, or any person not properly classifiable as an employee, are excluded. Contractors You must use the same long-term contract accounting method for Idaho reporting purposes that you used for federal reporting purposes. Compensation is paid in Idaho if any one of the following tests are met: • The individual’s service is performed entirely within Idaho; or • The individual’s service is performed both in and outside Idaho but the service performed outside Idaho is incidental to the individual’s service in Idaho; or • Some of the service is performed in Idaho and the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in Idaho; or • Some of the service is performed in Idaho and the base of operations, or the place from which the service is directed or controlled, isn’t in any state in which some part of the service is performed, but the individual’s residence is in Idaho. Modified Factors for Certain Industries Idaho has adopted the Multistate Tax Commission (MTC) regulations for the following special industries. Examples of the computations of these factors are found in the applicable MTC regulations. You can find them under Laws and Rules at tax.idaho.gov. EIN00071 05-09-2019v4 If the percentage of completion method is used, the following special rules apply in addition to the general property, payroll, and sales factor rules. The property factor denominator includes the average value of the taxpayer’s cost of construction in progress (including materials and labor) to the extent the costs exceed progress billings. The portion of this amount attributable to construction projects in Idaho is included in the Idaho numerator. Don’t include any value in the property factors for your equity in the projects if progress billings exceed construction costs. The sales factor includes only the portion of the gross contract price which corresponds to the percentage of the entire contract which was completed at the end of the tax year. For example, if the project was 30% complete at the end of the tax year, 30% of the bid price should be included in the gross receipts. Gross receipts from a construction project are attributable to Idaho if the construction is located in Idaho. Gross receipts from a construction project located partially in Idaho are included in the numerator based on ratio of construction costs for the project in Idaho for the tax year to the total of construction costs for that project for the tax year. Compensation paid for work on a particular construction project is included in the payroll factor even though capitalized into the cost of construction. Compensation is attributable to the state where most of the employee’s service is performed, regardless of where reported for unemployment tax purposes. Page 2 of 3 Form 402 — Instructions (continued) Specific Instructions Instructions are for lines not fully explained on the form. 2019 Line 28. For all taxpayers other than electrical and telephone utilities, multiply the amount on line 27 by two. This is your double-weighted sales factor. Property Line 8. Enter the cost of property or equipment under construction if included in the totals on the lines above. Don’t include inventoriable goods in process. Payroll Line 35. Divide Idaho wages and salaries, line 34, by total wages and salaries, line 33. Compute the percentage to four decimal places. Line 10. To compute total average owned property, add beginning and end of the year amounts from the total columns on line 9, and divide by two. To compute Idaho average owned property, add beginning and end of the year amounts from the Idaho columns on line 9, and divide by two. Total Percentage Line 36. For all taxpayers other than electrical and telephone utilities, add the percentages on lines 14, 28, and 35. For electrical and telephone utilities, add the percentages on lines 14, 27, and 35. Line 11. Multiply your total and Idaho net annual rents by eight, and enter here. Line 14. Divide Idaho owned and rented property, line 13, by total owned and rented property, line 12. Compute the percentage to four decimal places. Sales Lines 16a and b. Enter the amounts from line 15 that were delivered or shipped to Idaho purchasers. Lines 17a and b. Enter the amounts from line 15 that were throwback sales to Idaho. A sale made in a state that has no jurisdiction to tax the seller is a throwback sale. Line 27. Divide Idaho gross receipts, line 26, by total gross receipts, line 25. Compute the percentage to four decimal places. Idaho Apportionment Factor Line 37. • For all taxpayers other than electrical and telephone utilities, divide the total percentage on line 36 by four. • For electrical and telephone utilities, divide the total percentage on line 36 by three. • If any of the factors don’t apply to your business, divide the total on line 36 by the number of factors used. For example, if your business has no employees anywhere, your factor is reduced by one. Multiply the apportionment factor by the net income/ loss of multistate activities reported on your Schedule C, E and F. Enter the resulting amount on the applicable lines of Idaho Form 43. Electrical and telephone utilities. This is your single-weighted sales factor. Go to line 29. Contact us: In the Boise area: (208) 334-7660 Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00071 05-09-2019v4 Page 3 of 3
Extracted from PDF file 2019-idaho-form-402.pdf, last modified November 2019

More about the Idaho FORM 402 Individual Income Tax TY 2019

We last updated the Individual Apportionment for Multistate Businesses in March 2020, so this is the latest version of FORM 402, fully updated for tax year 2019. You can download or print current or past-year PDFs of FORM 402 directly from TaxFormFinder. You can print other Idaho tax forms here.

Other Idaho Individual Income Tax Forms:

TaxFormFinder has an additional 65 Idaho income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
FORM 24 Idaho Grocery Credit Refund
FORM 40 Idaho Individual Income Tax
FORM 51 Estimated Payment of Idaho Individual Income Tax
Income Tax Instructions Idaho Income Tax Instruction Booklet
FORM 43 Idaho Part-Year Resident & Nonresident Income Tax Return

Download all ID tax forms View all 66 Idaho Income Tax Forms


Form Sources:

Idaho usually releases forms for the current tax year between January and April. We last updated Idaho FORM 402 from the State Tax Commission in March 2020.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Idaho FORM 402

We have a total of seven past-year versions of FORM 402 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2019 FORM 402

Form 402, Individual Apportionment for Multistate Businesses and Instructions


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