2005 Idaho Code - 63-3022 — ADJUSTMENTS TO TAXABLE INCOME

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3022.  ADJUSTMENTS TO TAXABLE INCOME. The additions and subtractions
set forth in this section, and in sections 63-3022A through 63-3022Q, Idaho
Code, are to be applied to the extent allowed in computing Idaho taxable
income:
    (a)  Add any state and local taxes, as defined in section 164 of the
Internal Revenue Code and, measured by net income, paid or accrued during the
taxable year adjusted for state or local tax refunds used in arriving at
taxable income.
    (b)  Add the net operating loss deduction used in arriving at taxable
income.
    (c)  (1) A net operating loss for any taxable year commencing on and after
    January 1, 2000, shall be a net operating loss carryback not to exceed a
    total of one hundred thousand dollars ($100,000) to the two (2)
    immediately preceding taxable years. Any portion of the net operating loss
    not subtracted in the two (2) preceding years may be subtracted in the
    next twenty (20) years succeeding the taxable year in which the loss
    arises in order until exhausted. The sum of the deductions may not exceed
    the amount of the net operating loss deduction incurred. At the election
    of the taxpayer, the two (2) year carryback may be foregone and the loss
    subtracted from income received in taxable years arising in the next
    twenty (20) years succeeding the taxable year in which the loss arises in
    order until exhausted. The election shall be made as under section
    172(b)(3) of the Internal Revenue Code. An election under this subsection
    must be in the manner prescribed in the rules of the state tax commission
    and once made is irrevocable for the year in which it is made. The term
    "income" as used in this subsection (c) means Idaho taxable income as
    defined in this chapter as modified by section 63-3021(b)(2), (3) and (4),
    Idaho Code.
    (2)  Net operating losses incurred by a corporation during a year in which
    such corporation did not transact business in Idaho or was not included in
    a group of corporations combined under subsection (t) of section 63-3027,
    Idaho Code, may not be subtracted. However, if at least one (1)
    corporation within a group of corporations combined under subsection (t)
    of section 63-3027, Idaho Code, was transacting business in Idaho during
    the taxable year in which the loss was incurred, then the net operating
    loss may be subtracted. Net operating losses incurred by a person, other
    than a corporation, in activities not taxable by Idaho may not be
    subtracted.
    (d)  In the case of a corporation, add the amount deducted under the
provisions of sections 243(a) and (c), 244, 245 and 246A of the Internal
Revenue Code (relating to dividends received by corporations) as limited by
section 246(b)(1) of said code.
    (e)  In the case of a corporation, subtract an amount determined under
section 78 of the Internal Revenue Code to be taxable as dividends.
    (f)  Subtract the amount of any income received or accrued during the
taxable year which is exempt from taxation by this state, under the provisions
of any other law of this state or a law of the United States, if not
previously subtracted in arriving at taxable income.
    (g)  For the purpose of determining the Idaho taxable income of the
beneficiary of a trust or of an estate:
    (1)  Distributable net income as defined for federal tax purposes shall be
    corrected for the other adjustments required by this section.
    (2)  Net operating losses attributable to a beneficiary of a trust or
    estate under section 642 of the Internal Revenue Code shall be a deduction
    for the beneficiary to the extent that income from the trust or estate
    would be attributable to this state under the provisions of this chapter.
    (h)  In the case of an individual who is on active duty as a full-time
officer, enlistee or draftee, with the armed forces of the United States,
which full-time duty is or will be continuous and uninterrupted for one
hundred twenty (120) consecutive days or more, deduct compensation paid by the
armed forces of the United States for services performed outside this state.
The deduction is allowed only to the extent such income is included in taxable
income.
    (i)  In the case of a corporation, including any corporation included in a
group of corporations combined under subsection (t) of section 63-3027, Idaho
Code, add any capital loss deducted which loss was incurred during any year in
which such corporation did not transact business in Idaho. However, do not add
any capital loss deducted if a corporation, including any corporation in a
group of corporations combined under subsection (t) of section 63-3027, Idaho
Code, was transacting business in Idaho during the taxable year in which the
loss was incurred. In the case of persons, other than corporations, add any
capital loss deducted which was incurred in activities not taxable by Idaho at
the time such loss was incurred. In computing the income taxable to an S
corporation or partnership under this section, deduction shall not be allowed
for a carryover or carryback of a net operating loss provided for in
subsection (c) of this section or a capital loss provided for in section 1212
of the Internal Revenue Code.
    (j)  In the case of an individual, there shall be allowed as a deduction
from gross income either (1) or (2) at the option of the taxpayer:
    (1)  The standard deduction as defined in section 63, Internal Revenue
    Code.
    (2)  Itemized deductions as defined in section 63 of the Internal Revenue
    Code except state or local taxes measured by net income and general sales
    taxes as either is defined in section 164 of the Internal Revenue Code.
    (k)  Add the taxable amount of any lump sum distribution excluded from
gross income for federal income tax purposes under the ten (10) year averaging
method. The taxable amount will include the ordinary income portion and the
amount eligible for the capital gain election.
    (l)  Deduct any amounts included in gross income under the provisions of
section 86 of the Internal Revenue Code relating to certain social security
and railroad benefits.
    (m)  In the case of a self-employed individual, deduct the actual cost of
premiums paid to secure worker's compensation insurance for coverage in Idaho,
if such cost has not been deducted in arriving at taxable income.
    (n)  In the case of an individual, deduct the amount contributed to a
college savings program pursuant to chapter 54, title 33, Idaho Code, but not
more than four  thousand dollars ($4,000) per tax year. If the contribution is
made on or before April 15, 2001, it may be deducted for tax year 2000 and an
individual can make another contribution and claim the deduction according to
the limits provided in this subsection during 2001 for tax year 2001, as long
as the contribution is made on or before December 31, 2001.
    (o)  In the case of an individual, add the amount of a nonqualified
withdrawal from an individual trust account or savings account established
pursuant to chapter 54, title 33, Idaho Code, less any amount of such
nonqualified withdrawal included in the individual's federal gross income
pursuant to section 529 of the Internal Revenue Code.