Utah Code 59-7-111. Safe harbor lease provisions

(1)

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Amortization: Paying off a loan by regular installments.
Income: includes losses. See Utah Code 59-7-101
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
Property: includes both real and personal property. See Utah Code 68-3-12.5
Safe harbor lease: means a lease that qualified as a safe harbor lease under Section 168, Internal Revenue Code. See Utah Code 59-7-101
Unadjusted income: includes deferred foreign income described in Section 965(a), Internal Revenue Code. See Utah Code 59-7-101

(1)(a) For purchasers or lessors of safe harbor leases, the following additions shall be made to unadjusted income:

(1)(a)(i) interest expense; and

(1)(a)(ii) depreciation claimed on safe harbor lease property.

(1)(b) For purchasers or lessors of safe harbor leases, the following subtractions shall be made from unadjusted income:

(1)(b)(i) rental income; and

(1)(b)(ii) amortization of the purchase price of tax benefits.

(2)

(2)(a) For sellers or lessees of safe harbor leases the following additions shall be made from unadjusted income:

(2)(a)(i) the amount of gain on the sale of federal tax benefits; and

(2)(a)(ii) rental expense on safe harbor lease property.

(2)(b) For sellers or lessees of safe harbor leases the following subtractions shall be made to unadjusted income:

(2)(b)(i) interest income; and

(2)(b)(ii) depreciation on safe harbor lease property.