45 Ind. Admin. Code 3.1-1-3

Current through December 12, 2024

Section 45 IAC 3.1-1-3 - Allowed Internal Revenue Code deductions

Authority: IC 6-8.1-3-3

Affected: IC 6-3-1-3.5

Sec. 3.

Internal Revenue Code Section 62 Deductions in Arriving at Indiana Adjusted Gross Income for Individuals. The following deductions contained in Internal Revenue Code Section 62 are allowed in determining Indiana Adjusted Gross Income:

(1) Trade and business deductions

(2) Certain trade or business deductions of employees

(3) Long-term capital gains deduction (Internal Revenue Code § 1202)

(4) Losses from the sale or exchange of property (Internal Revenue Code § 161 and following)

(5) Deductions attributable to rents and royalties (Internal Revenue Code § 161 and following, § 212, and § 611)

(6) Certain deductions of life tenants and income beneficiaries of property (Internal Revenue Code § 167 and § 611)

(7) Pension, profit-sharing, annuity, and bond purchase plans of self-employed individuals [Internal Revenue Code § 401 (c)(1), § 404, and § 405 (c)]

(8) Moving expense deduction-Indiana residents may take a deduction against gross income for moving expenses incurred in a move into or within Indiana, provided that the requirements outlined in Section 217 of the Internal Revenue Code are met. If a taxpayer moves out of Indiana he is not allowed to take this deduction. An exception to this rule occurs when the taxpayer remains a resident of Indiana after he changes locations. For example, an Indiana resident who is in the military remains an Indiana resident regardless of where he is stationed. If such person's duty station is changed he may take this deduction for expenses incurred in the move.

(9) Pension, profit-sharing, annuity, and bond purchase plans of electing small business corporations [Internal Revenue Code § 1379 (b) (3)]

(10) Retirement savings [Internal Revenue Code § 219 and § 220]

(11) Certain portions of lump-sum distributions from pension plans taxed under Internal Revenue Code § 402 (e) [IRC § 402 (e) (3)]

(12) Penalties for premature withdrawal of funds from time savings accounts or deposits (IRC § 165)

(13) Alimony (Internal Revenue Code § 215)

45 IAC 3.1-1-3

Department of State Revenue; Reg 6-3-1-3.5 a (030); filed Oct 15, 1979, 11:15 am: 2 IR 1511; errata, 2 IR 1743