HOME    SEARCH    ABOUT US    CONTACT US    HELP   
           
Rule: 42.26.905 Prev     Up     Next    
Rule Title: COMPUTATION FOR YEAR OF WITHDRAWAL, DISSOLUTION, OR CESSATION OF BUSINESS - COMPLETED CONTRACT METHOD
Add to My Favorites
Add to Favorites
Department: REVENUE
Chapter: CORPORATE MULTISTATE ACTIVITIES
Subchapter: Special Rules for Construction Contracts
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

Printer Friendly Version

42.26.905    COMPUTATION FOR YEAR OF WITHDRAWAL, DISSOLUTION, OR CESSATION OF BUSINESS - COMPLETED CONTRACT METHOD

(1) Use of the completed contract method of accounting for long-term contracts requires that income derived from sources within this state from incomplete contracts in progress outside this state on the date of withdrawal, dissolution or cessation of business in this state be included in the measure of tax for the taxable year during which the corporation withdraws, dissolves or ceases doing business in this state.

(2) The amount of income (or loss) from each such contract to be apportioned to this state by the apportionment method set forth in ARM 42.26.904 shall be determined as if the percentage of completion method of accounting were used for all such contracts on the date of withdrawal, dissolution, or cessation of business. The amount of apportionable income (or loss) for each such contract shall be the amount by which the gross contract price from each such contract which corresponds to the percentage of the entire contract which has been completed from the commencement thereof to the date of withdrawal, dissolution, or cessation of business exceeds all expenditures made during such period in connection with each such contract. In so doing account must be taken of the material and supplies on hand at the beginning and end of the income year for use in each such contract.

 

History: 15-31-313, 15-31-501, MCA; IMP, 15-31-301, 15-31-312, MCA; NEW, 1988 MAR p. 1818, Eff. 8/12/88; TRANS, from 42.26.294 and AMD, 2001 MAR p. 2469, Eff. 12/21/01; AMD, 2017 MAR p. 2328, Eff. 1/1/18.


 

 
MAR Notices Effective From Effective To History Notes
42-2-985 1/1/2018 Current History: 15-31-313, 15-31-501, MCA; IMP, 15-31-301, 15-31-312, MCA; NEW, 1988 MAR p. 1818, Eff. 8/12/88; TRANS, from 42.26.294 and AMD, 2001 MAR p. 2469, Eff. 12/21/01; AMD, 2017 MAR p. 2328, Eff. 1/1/18.
12/21/2001 1/1/2018 History: Sec. 15-31-313 and 15-31-501, MCA; IMP, Sec. 15-31-301 and 15-31-312, MCA; NEW, 1988 MAR p. 1818, Eff. 8/12/88; TRANS, from 42.26.294 and AMD, 2001 MAR p. 2469, Eff. 12/21/01.
Home  |   Search  |   About Us  |   Contact Us  |   Help  |   Disclaimer  |   Privacy & Security