39-22-303(11)(f) Domestic C Corporations with De Minimis or No Property and Payroll. Basis and Purpose. The bases for this rule are sections 39-21-112 and 39-22-303,

C.R.S. The purpose of this rule is to explain the manner in which the de minimis standard in section 39-22-303(11)(f), C.R.S., will be uniformly applied to taxpayers. (1) For purposes of section 39-22-303(11)(f), C.R.S., “de minimis” means less than $100,000 of property and payroll, combined. Property and payroll is determined by factoring pursuant to section 24-60-1301, C.R.S. For purposes of section 39- 22-303(11)(f), C.R.S., and this rule, section 24-60-1301, C.R.S., establishes the criteria for valuing the amounts of property and payroll counting toward the $100,000 de minimis threshold set forth in this paragraph (1). (2) Example. A C corporation has $70,000 of property and $0 of payroll as determined by factoring pursuant to section 24-60-1301, C.R.S. That C corporation has de minimis property and payroll for purposes of section 39-22- 303(11)(f), C.R.S., and is therefore deemed to satisfy the requirements of section 39-22-303(11)(a), C.R.S.