42.15.510    DEFINITIONS

The following definitions apply to rules found in this subchapter:

(1) "Nonbusiness deduction" has the same meaning as nonbusiness deduction for federal income tax purposes when computing a net operating loss and includes the following Montana items:

(a) the standard deduction provided in 15-30-2132, MCA;

(b) the deduction for federal income taxes provided in 15-30-2131, MCA, to the extent not attributable to business profits;

(c) the deduction for political contributions provided in 15-30-2131, MCA;

(d) the part of the deduction for expenses for organic and byproduct inorganic fertilizer provided in 15-30-2131, MCA, that is not a trade or business expense;

(e) the deduction for payments for premiums for medical care and for premiums and certificates for long-term care provided in 15-30-2131, MCA;

(f) the deduction for a light vehicle registration fee provided in 15-30-2131, MCA, if it is not a trade or business expense;

(g) the deduction for the patriotic license plate surcharge provided in 15-30-2142, MCA, if it is not a trade or business expense;

(h) the deduction for per capita livestock fees if they are not trade or business expenses; and

(i) the deductions for charitable contributions, including contributions to the child abuse and neglect prevention program provided in 15-30-2131 and 15-30-2143, MCA, donations of computer equipment to schools by small business corporations provided in 15-31-172, MCA, and donations to the veterans' services account or the state veterans' cemetery program provided in 15-30-2142, MCA.

(2) "Nonbusiness income" has the same meaning as nonbusiness income for federal income tax purposes when computing a net operating loss and includes the following Montana items:

(a) interest on the obligations of another state or territory and mutual fund dividends attributable to the interest;

(b) federal income tax refunds and other recoveries of nonbusiness deductions in a prior tax year that reduced Montana income tax;

(c) income attributable to the unqualified withdrawals from medical savings accounts provided in 15-61-203, MCA, and the unqualified withdrawals from first-time home buyer savings accounts provided in 15-63-203, MCA; and

(d) decrease in the federal charitable contribution deduction attributable to claiming a charitable endowment tax credit.

History: 15-30-2620, MCA; IMP, 15-30-2101, 15-30-2119, MCA; NEW, 2004 MAR p. 3147, Eff. 12/17/04; AMD, 2010 MAR p. 1088, Eff. 4/30/10.