(1) In determining the taxable income of a resident pass-through entity taxpayer, an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity shall be made in accordance with this section.

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Terms Used In Utah Code 59-10-1404.5

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: includes :
              (1)(b)(i) an association;
              (1)(b)(ii) a joint stock company; and
              (1)(b)(iii) an insurance company. See Utah Code 59-10-103
  • Pass-through entity: means a business entity that is:
         (11)(a) the following if classified as a partnership for federal income tax purposes:
              (11)(a)(i) a general partnership;
              (11)(a)(ii) a limited liability company;
              (11)(a)(iii) a limited liability partnership; or
              (11)(a)(iv) a limited partnership;
         (11)(b) an S corporation;
         (11)(c) an estate or trust with respect to which the estate's or trust's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; or
         (11)(d) a business entity similar to Subsections (11)(a) through (c):
              (11)(d)(i) with respect to which the business entity's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; and
              (11)(d)(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 59-10-1402
  • Pass-through entity taxpayer: means a resident or nonresident individual, a resident or nonresident business entity, or a resident or nonresident estate or trust:
         (12)(a) that is:
              (12)(a)(i) for a general partnership, a partner;
              (12)(a)(ii) for a limited liability company, a member;
              (12)(a)(iii) for a limited liability partnership, a partner;
              (12)(a)(iv) for a limited partnership, a partner;
              (12)(a)(v) for an S corporation, a shareholder;
              (12)(a)(vi) for an estate or trust described in Subsection(11)(c), a beneficiary; or
              (12)(a)(vii) for a business entity described in Subsection(11)(d), a member, partner, shareholder, or other title designated by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
         (12)(b) to which the income, gain, loss, deduction, or credit of a pass-through entity is passed through. See Utah Code 59-10-1402
  • Resident pass-through entity taxpayer: means a pass-through entity taxpayer that is a:
         (14)(a) resident individual; or
         (14)(b) resident business entity. See Utah Code 59-10-1402
  • Taxpayer: means any of the following that has income subject in whole or part to the tax imposed by this chapter:
              (1)(aa)(i) an individual;
              (1)(aa)(ii) an estate, a trust, or a beneficiary of an estate or a trust that is not a pass-through entity or a pass-through entity taxpayer;
              (1)(aa)(iii) a pass-through entity; or
              (1)(aa)(iv) a pass-through entity taxpayer. See Utah Code 59-10-103
(2) For a resident pass-through entity taxpayer of a pass-through entity except for a pass-through entity that is an S corporation, the resident pass-through entity taxpayer‘s share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:

     (2)(a) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the resident pass-through entity taxpayer’s distributive share of the item of income, gain, loss, deduction, or credit:

          (2)(a)(i) for federal income tax purposes; and
          (2)(a)(ii) determined under Section 704 et seq., Internal Revenue Code; or
     (2)(b) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the resident pass-through entity taxpayer’s distributive share of income, gain, loss, deduction, or credit:

          (2)(b)(i) relating to the pass-through entity generally;
          (2)(b)(ii) for federal income tax purposes; and
          (2)(b)(iii) under Section 704 et seq., Internal Revenue Code.
(3) For a resident pass-through entity taxpayer of a pass-through entity that is an S corporation, the resident pass-through entity taxpayer’s share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:

     (3)(a) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the resident pass-through entity taxpayer’s pro rata share of the item of income, gain, loss, deduction, or credit:

          (3)(a)(i) for federal income tax purposes; and
          (3)(a)(ii) determined under Section 1366 et seq., Internal Revenue Code; or
     (3)(b) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the resident pass-through entity taxpayer’s pro rata share of the item of income, gain, loss, deduction, or credit:

          (3)(b)(i) relating to the pass-through entity generally;
          (3)(b)(ii) for federal income tax purposes; and
          (3)(b)(iii) under Section 1366 et seq., Internal Revenue Code.