Instructions For Idaho Form 402 (Page 2 of 2) in pdf

IA00551-3

Instructions for Idaho Form 402

6-02-03

General Information

Modified Factors for Certain Industries

The property factor denominator includes the average value of the

Idaho has adopted the Multistate Tax Commission (MTC) regula-

taxpayer's cost of construction in progress (including materials

tions for the following special industries. Examples of the compu-

and labor) to the extent the costs exceed progress billings. The

tations of these factors are found in the applicable MTC regula-

portion of this amount attributable to construction projects in Idaho

tions. You can find the MTC regulations on the Internet at http://

is included in the Idaho numerator. Do not include any value in the

property factors for your equity in the projects if progress billings

exceed construction costs.

Carriers of Freight and Passengers

If you are in the business of transporting passengers, freight or

The sales factor includes only the portion of the gross contract

mail by motor carrier, your apportionment factor should reflect the

price which corresponds to the percentage of the entire contract

movement of your transportation equipment and personnel. This

which was completed at the end of the tax year. For example, if the

is done by including the transportation revenue, property and pay-

project was 30% complete at the end of the tax year, 30% of the bid

roll in the Idaho numerators based on the percentage of miles

price should be included in the gross receipts. Gross receipts

traveled in Idaho to miles traveled everywhere.

from a construction project are attributable to Idaho if the construc-

tion is located in Idaho. Gross receipts from a construction project

Other revenue, fixed property, and compensation of employees

located partially in Idaho are included in the numerator based on

assigned to fixed locations are included in the factors based on

ratio of construction costs for the project in Idaho for the tax year to

the general apportionment rules.

the total of construction costs for that project for the tax year.

Contractors

Compensation paid for work on a particular construction project is

You must use the same long-term contract accounting method for

included in the payroll factor even though capitalized into the cost

Idaho reporting purposes that you used for federal reporting pur-

of construction. Compensation is attributable to the state where

poses.

most of the employee's service is performed, regardless of where

reported for unemployment tax purposes.

If the percentage of completion method is used, the following spe-

cial rules apply in addition to the general property, payroll, and

sales factor rules.

Specific Instructions

Instructions are for lines not fully explained on the form.

Property

Line 28. For all taxpayers other than electrical and telephone

Line 8. Enter the cost of property or equipment under construction

utilities, multiply the amount on line 27 by 2. This is your double-

if included in the totals on the lines above. Do not include

weighted sales factor.

inventoriable goods in process.

Payroll

Line 10. To compute total average owned property, add beginning

Line 35. Divide Idaho wages and salaries, line 34, by total wages

and end of the year amounts from the total columns on line 9, and

and salaries, line 33. Compute the percentage to four decimal

divide by two. To compute Idaho average owned property, add

places.

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

Line 11. Multiply your total and Idaho net annual rents by 8, and

utilities, add the percentages on lines 14, 28, and 35. For electri-

enter here.

cal and telephone utilities, add the percentages on lines 14, 27,

and 35.

Line 14. Divide Idaho owned and rented property, line 13, by total

owned and rented property, line 12. Compute the percentage to

Idaho Apportionment Factor

four decimal places.

Line 37.

•

For all taxpayers other than electrical and telephone utilities,

Sales

divide the total percentage on line 36 by 4.

Lines 16a and b. Enter the amounts from line 15 that were deliv-

•

For electrical and telephone utilities, divide the total percent-

ered or shipped to Idaho purchasers.

age on line 36 by 3.

•

If any of the factors do not apply to your business, divide the total

Lines 17a and b. Enter the amounts from line 15 that were throw-

on line 36 by the number of factors used. For example, if your

back sales to Idaho. A sale made in a state that has no jurisdiction

business has no employees anywhere, your factor is reduced

to tax the seller is a throwback sale.

by one.

Line 27. Divide Idaho gross receipts, line 26, by total gross re-

Multiply the apportionment factor by the net income/loss of multi-

ceipts, line 25. Compute the percentage to four decimal places.

state activities reported on your Schedule C, E and F. Enter the

Electrical and telephone utilities. This is your single-weighted

resulting amount on the applicable lines of Idaho Form 43.

sales factor. Go to line 29.

Instructions For Idaho Form 402 Page 2

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