ANH MAI
Business/nonbusiness income research assignment due Sept. 25
Using RIA Checkpoint or another research service available to you:
Locate the definition of business income in UDITPA (Article IV of the Multistate Tax Compact
1. Identify the relevant section of UDITPA, and copy and paste the language and the UDITPA section number into your paper. ).
UDITPA Sec. 1(a) defines business income:
'Business income' is income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations."
UDITPA Sec. 1(e) defines "nonbusiness income" as "all income other than business income."
2. Find the definition of "business income" in the statutes of each of the following states. Note that a state may define that term in the negative, by defining "nonbusiness" income.
Arizona
A.R.S. § 43-1131.1 and Arizona Administrative Code (A.A.C.) rule R15-2-1131.A define "business income" to mean income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.
A.R.S. § 43-1131.4 and A.A.C. R15-2-1131.A define "nonbusiness income" as all income other than business income.
Florida
Chapter 220, section 03, Florida Statutes(r) :“Nonbusiness income” means rents and royalties from real or tangible personal property, capital gains, interest, dividends, and patent and copyright royalties, to the extent that they do not arise from transactions and activities in the regular course of the taxpayer’s trade or business. The term “nonbusiness income” does not include income from tangible and...