(1) Rental income from real and tangible property is characterized as apportionable income if the property with respect to which the rental income was received is, or was, used in the taxpayer's trade or business and therefore is includable in the property factor under ARM 42.26.231 and 42.26.237. Property that has been converted to nonapportionable use has lost its character as a business asset and is not subject to the rule of the preceding sentence.

(2) Gain or loss from the sale, exchange, or other dispositions of real property or of tangible or intangible personal property constitutes apportionable income if the property while owned by the taxpayer was used in, or was otherwise included in the property factor of, the taxpayer's trade or business. However, if such property was utilized for the production of nonapportionable income or otherwise was removed from the property factor before its sale, exchange, or other disposition, the gain or loss will constitute nonapportionable income. See ARM 42.26.232.

(3) Interest income is characterized as apportionable income where the intangible with respect to which the interest was received arises out of or was created in the regular course of the taxpayer's trade or business operations or where the acquiring and holding the intangible is an integral, functional, or operative component of the taxpayer's trade or business operations, or otherwise materially contributes to the production of apportionable income of the trade or business operations.

(4) Dividends constitute apportionable income where the stock with respect to which the dividends are received arises out of or was acquired in the regular course of the taxpayer's trade or business operations or where the acquiring and holding the stock is an integral, functional, or operative component of the taxpayer's trade or business operations, or otherwise materially contributes to the production of apportionable income of the trade or business operations.

(5) Patent and copyright royalties are characterized as apportionable income where the patent or copyright with respect to which the royalties were received arises out of or was created in the regular course of the taxpayer's trade or business operations or where the acquiring and holding the patent or copyright is an integral, functional, or operative component of the taxpayer's trade or business operations, or otherwise materially contributes to the production of apportionable income of the trade or business operations.