Section 35.01.01.115 - INTEREST EXPENSE OFFSET RELATED TO TAX-EXEMPT INTEREST INCOMESection 63-3022M, Idaho Code
01.In General. The interest expense offset provided by Section 63-3022M, Idaho Code, is a separate and distinct adjustment from provisions in the Internal Revenue Code that disallow interest expense related to federal tax-exempt interest. a. If a taxpayer owns an interest in a pass-through entity, that entity's tax-exempt income is to also be included to the extent of the taxpayer's interest.b. Interest income that is only partially exempt for federal purposes is not included. Also, expenses related to tax-exempt interest income such as adjustments provided by Sections 265 and 291, Internal Revenue Code, are not included.Idaho Admin. Code r. 35.01.01.115