Allocation of nonbusiness income

Authority: IC 6-8.1-3-3 Affected: IC 6-3-2-2 Sec. 56. Allocation of Nonbusiness Income. Rents, royalties, capital gains, interest and dividends when considered nonbusiness income are allocated to specific jurisdictions as outlined in Regulations 6-3-2-2(h) through 6-3-2-2(k) [ 45 IAC 3.1-1-57 – 45 IAC 3.1-1-61 ] . Such income and the deductions connected therewith are not taken into consideration in computing the taxpayer's apportionment formula. When the taxpayer has deductions applicable to both business and nonbusiness income, such deductions must be prorated to determine what part is subject to allocation. (Department of State Revenue; Reg 6-3-2-2(g)(010); filed Oct 15, 1979, 11:15 am: 2 IR 1530; errata, 2 IR 1743)