Which statement regarding transit property is true?

Transit property refers to goods that are transported through a state but are not intended to be sold or delivered there. When calculating the apportionment of income for corporate taxation, states often consider where goods are located and how they are used within the state.

The statement that transit property can be included in the destination state numerator is correct because it recognizes that transit property can impact the distribution of income for tax purposes. In instances where goods are transported between states, particularly to a final destination, some states may choose to include the property in their calculation. This inclusion is relevant because the taxing jurisdiction may want to capture the economic activity generated by the presence and movement of those goods even if they are not permanently located in the state.

The relevance of including transit property in the destination state numerator emphasizes that states can have different rules and methodologies for how they view property for tax purposes, especially in cases of transit where the goods contribute to economic activity such as sales or future deliveries.

In contrast, the understanding of the other options reflects a more limited perspective on transit property. While some states may treat transit property differently, asserting that it is never included in any state factor, included only in the origin state, or excluded entirely dismisses the nuanced approach some states take regarding economic presence