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Form 402
Individual Apportionment for Multistate Businesses

For the calendar year or fiscal year beginning , ending
Names as shown on return Social Security number or EIN

Check if using three-factor apportionment Total Idaho
Beginning of End of Beginning of End of
Property (At original cost) Year Year Year Year
1. Inventories ...................................................................
2. Buildings ......................................................................
3. Machinery and equipment ...........................................
4. Furniture and fixtures ..................................................
5. Delivery equipment .....................................................
6. Land ............................................................................
7. Other assets (describe) ...............................................
8. Less: Construction in progress ....................................
9. Owned property. Add lines 1 through 7 less line 8 ......
10. Average owned property. See instructions .............................................
11. Rented property (capitalize @ 8 times the rents) ...................................
12. Total owned and rented property. Add lines 10 and 11 ...........................
13. Idaho owned and rented property. Add lines 10 and 11 ................................................................................
14. Idaho property percentage. Compute the percentage to four decimal places .............................................. %
Sales (Gross receipts) Total Idaho
15. Gross sales, less returns and allowances ..........................................................................
16. Sales delivered or shipped to Idaho purchasers:
a. Shipped from outside Idaho ..................................................................................................
b. Shipped from within Idaho ....................................................................................................
17. Sales shipped from Idaho to:
a. The United States government ...................................................................................
b. Purchasers in a state where the taxpayer was not subject to a net income tax
or a tax based upon or measured by net income ........................................................
18. Sales of services ................................................................................................................
19. Dividends ...........................................................................................................................
20. Interest income subject to apportionment ..........................................................................
21. Gross rents received ..........................................................................................................
22. Gross royalties ...................................................................................................................
23. Gross sales from Form 4797 and/or Schedule D ..............................................................
24. Other Income .....................................................................................................................
25. Total gross receipts. Add lines 15 and 18 through 24 ........................................................
26. Idaho gross receipts. Add lines 16 through 24 ..............................................................................................
27. Idaho sales percentage. Compute percentage to four decimal places ......................................................... %
28. Reserved ......................................................................................................................................................
Payroll (Wages, salaries, other employee compensation) Total Idaho
29. Compensation of officers ....................................................................................................
30. Salaries and wages ............................................................................................................
31. Labor included in cost of goods sold ..................................................................................
32. Other ..................................................................................................................................
33. Total wages and salaries. Add lines 29 through 32 ............................................................
34. Idaho wages and salaries. Add lines 29 through 32 .....................................................................................
35. Idaho payroll percentage. Compute percentage to four decimal places ...................................................... %
36. Total percent. See instructions .................................................................................................................... %
37. Idaho apportionment factor. Average percentage. See instructions ............................................................. %
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Form 402 — Instructions
Individual Apportionment for Multistate Businesses

General Instructions completed at the end of the tax year. For example, if
If you’re a nonresident transacting business in the project was 30% complete at the end of the tax
Idaho and another state or country, your entire year, 30% of the bid price should be included in the
business income is subject to Idaho apportionment. gross receipts. Gross receipts from a construction
The elements of the apportionment formula are the project are attributable to Idaho if the construction is
property, sales, and payroll factors of your trade located in Idaho. Gross receipts from a construction
or business. Factor information is available at project located partially in Idaho are included in the
tax.idaho.gov. numerator based on ratio of construction costs for
the project in Idaho for the tax year to the total of
Modified Factors for Certain Industries construction costs for that project for the tax year.
Idaho has adopted the Multistate Tax Commission
Compensation paid for work on a particular
(MTC) regulations for the following special
construction project is included in the payroll factor
industries. Examples of the computations of these
even though capitalized into the cost of construction.
factors are found in the applicable MTC regulations.
Compensation is attributable to the state where most
You can find them under Laws and Rules at
of the employee’s service is performed, regardless of
tax.idaho.gov.
where reported for unemployment tax purposes.
Carriers of Freight and Passengers
If you’re in the business of transporting passengers, Specific Instructions
freight or mail by motor carrier, your apportionment Instructions are for lines not fully explained on the
factor should reflect the movement of your form.
transportation equipment and personnel. This Single sales factor is the default apportionment
is done by including the transportation revenue, method. Electrical, telephone and communications
property and payroll in the Idaho numerators based corporations (as defined in Idaho Code) and MTC
on the percentage of miles traveled in Idaho to miles special industries (construction contractors, airlines,
traveled everywhere. railroads, trucking companies, television and radio
Other revenue, fixed property, and compensation of broadcasting, publishing, and financial institutions)
employees assigned to fixed locations are included in can elect to use a three-factor method. If you’re using
the factors based on the general apportionment rules. three-factor apportionment, check this box and provide
a list of the companies using the three-factor method.
Contractors
You must use the same long-term contract All taxpayers must complete all three sections (property,
accounting method for Idaho reporting purposes that payroll and sales). Only three-factor taxpayers will use all
you used for federal reporting purposes. three factors to compute their apportionment factor.
If the percentage of completion method is used, Property
the following special rules apply in addition to the Line 8. Enter the cost of property or equipment under
general property, payroll, and sales factor rules. construction if included in the totals on the lines above.
Don’t include inventoriable goods in process.
The property factor denominator includes the
average value of the taxpayer’s cost of construction Line 10. To compute total average owned property,
in progress (including materials and labor) to the add beginning and end of the year amounts from the
extent the costs exceed progress billings. The total columns on line 9, and divide by two. To compute
portion of this amount attributable to construction Idaho average owned property, add beginning and end
projects in Idaho is included in the Idaho numerator. of the year amounts from the Idaho columns on line 9,
Don’t include any value in the property factors for and divide by two.
your equity in the projects if progress billings exceed
construction costs. Line 11. Multiply your total and Idaho net annual rents
by eight, and enter here.
The sales factor includes only the portion of the
gross contract price which corresponds to the
percentage of the entire contract which was

EIN00071 11-03-2022 Page 1 of 2

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Form 402 — Instructions (continued)

Line 14. Divide Idaho owned and rented property, Total Percentage
line 13, by total owned and rented property, line 12. Line 36. For taxpayers using the three-factor
Compute the percentage to four decimal places. apportionment method, add the percentages on
lines 14, 27, and 35.
Sales
Lines 16a and b. Enter the amounts from line 15 Idaho Apportionment Factor
that were delivered or shipped to Idaho purchasers. Line 37.
• For taxpayers using the three-factor
Lines 17a and b. Enter the amounts from line 15
apportionment method, divide the total on line
that were throwback sales to Idaho. A sale made in
36 by three. If any of the factors don’t apply to
a state that has no jurisdiction to tax the seller is a
your business, divide the total on line 36 by the
throwback sale.
number of factors used. For example, if your
Line 27. Divide Idaho gross receipts, line 26, business has no employees anywhere, your
by total gross receipts, line 25. Compute the factor is reduced by one.
percentage to four decimal places. • For all other taxpayers, use the percentage on
line 27.
Payroll
Line 35. Divide Idaho wages and salaries, line 34, Multiply the apportionment factor by the net
by total wages and salaries, line 33. Compute the income/loss of multistate activities reported on your
percentage to four decimal places. Schedule C, E and F. Enter the resulting amount on

Contact us:
In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
EIN00071 11-03-2022 Page 2 of 2

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