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Instructions for Idaho Form ID K-1

EFO00201p3

08-03-10v4

GENERAL INSTRUCTIONS

HEADING AND QUESTIONS

Tax Year

File the 2010 form for calendar year 2010 or a fiscal year that

Form ID K-1 is used to provide the partner, shareholder, or

begins in 2010. If the PTE’s tax year is a fiscal year, fill in the tax

beneficiary of a pass-through entity (PTE) with information

year space at the top of the form.

required to complete the pass-through owner’s (PTO’s) Idaho

income tax return. Form ID K-1 doesn't duplicate federal

Final Return and Amended Return

information and isn't intended to be a substitute for the federal

If this is the last year the PTE is filing an Idaho income tax

Schedule K-1. The information reported on the Form ID K-1

return or if the PTE is filing an amended Idaho return, check the

relates to Idaho law and identifies Idaho adjustments, allocation

applicable box at the top of the form.

and apportionment amounts, credits, and recapture amounts.

Items that are included on federal Schedule K-1, such as the

Identification Numbers, Name and Address

Section 179 deduction, aren't shown on the ID K-1 as most

Write the PTE’s federal employer identification number (EIN),

amounts required on the Form ID K-1 aren't found on the federal

business name, and address in the spaces provided.

Schedule K-1.

Write the PTO’s social security number or EIN, name, and

A copy of each PTO's federal Schedule K-1 and Form ID K-1

address in the spaces provided.

must be included with the PTE's Idaho tax return filed by:

Question a: Idaho Gross Income

●

Every partnership or S corporation transacting business in

If the PTO is an individual, trust, or estate, enter the amount of

Idaho

the PTO’s distributive share of the PTE’s gross income. Don't

●

Every estate or trust required to file an Idaho income tax

multipy this by the PTE's Idaho apportionment factor.

return

This amount doesn't go on the PTO's Idaho return. It's used to

A copy of the Form ID K-1 must be provided to each PTO. PTOs

determine whether a nonresident or part-year resident individual,

won't file this form with their Idaho income tax return, but should

trust, or an estate has a filing requirement in Idaho.

keep it for their records.

Gross income is determined as provided in the Internal Revenue

Reporting of Pass-Through Items by Individual PTOs

Code (IRC) sections 61(a), 691, 702(c) and 1366(c). These

Idaho part-year resident and nonresident individuals, need to

amounts can be reported as non-separately stated items or as

modify the amounts reported on the Form ID K-1 before entering

separately stated items, and can be found on various schedules.

them on their Idaho individual income tax returns. A nonresident

Gross income won't generally tie to a specific line on the Form

uses the Idaho apportionment factor to determine how much of

41S, Form 65, or Form 66 because many of the amounts on the

his share of income and deduction from the PTE is from an Idaho

return are reported net of expenses.

source. A part-year resident is considered to have earned the

income from a PTE ratably during the tax year. For the portion

Income from an interest in an estate or trust is included within the

of the year that the PTO was a nonresident, he will use the Idaho

federal definition of gross income. This constitutes gross income

apportionment factor to determine how much of his share of

from the detailed rules of IRC Subtitle A, Chapter 1, Subchapter

income and deductions considered earned during that time is

J, Part I (section 641 and following). See Treas. Reg. section

from an Idaho source. For the portion of the year he is a resident

1.61-13(a).

of Idaho, he must report all the Idaho income and deductions

considered earned during that portion of the year.

Question b: Disregarded Entity Status

If the PTO is treated as a disregarded entity under the IRC,

A resident of Idaho will be taxed by Idaho on his entire share

check this box.

of the income from the PTE even if the income is apportioned

between Idaho and other states.

Question c: Tax Paid on Behalf of PTO

If the PTE is paying the tax on behalf of the PTO, check this box.

Qualified Investment Partnerships

The PTO won’t be required to file an Idaho individual income tax

Special rules apply to a PTO who is a nonresident individual

return for the tax year in which an election is made. The election

when the PTE is a qualified investment partnership under Idaho

to have the PTE pay the tax for the PTO isn’t available to the

law. A qualified investment partnership is an entity classified as

following:

a partnership for federal income tax purposes and isn’t a publicly

traded partnership taxed as a corporation, with at least 90% of its

●

Corporations, partnerships, or electing small business trusts,

gross income from investments whose income wouldn’t be taxed

or to any other person who isn’t an individual

by Idaho if received directly by a nonresident individual. If the

●

Individuals who have Idaho taxable income from sources

PTE is a qualified investment partnership, include a statement on

other than pass-through entities

Form ID K-1, Part E, Supplemental Information that the PTE is a

qualified investment partnership and that a nonresident may not

Enter the amount of tax paid for the PTO on the line provided.

be taxed on certain investment income. Noninvestment income

from an Idaho source is subject to Idaho tax.

The PTE must either complete Sections A through E for an

SPECIFIC INSTRUCTIONS

electing PTO or include a schedule that identifies how the tax for

the PTO was computed, including any credits that are used to

offset tax.

All amounts on the Form ID K-1 should be included before

applying the Idaho apportionment factor of the PTE. A PTO who

is a nonresident individual will apply the Idaho apportionment

factor in computing the amounts to include on his Idaho

individual income tax return.

Form Id K-1 Draft - Partner'S, Shareholder'S, Or Beneficiary'S Share Of Idaho Adjustments, Credits, Etc. - 2010 Page 3

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