2006 Utah Code - 59-7-702 — Taxation of shareholders.

     59-7-702.   Taxation of shareholders.
     (1) Except as provided in Subsection (2), items of Utah taxable income, expenses, losses, and credits shall be passed through to the shareholders and be taxed as provided in Subtitle A, Chapter 1S, Part 2, Internal Revenue Code.
     (2) (a) A resident shareholder shall recognize the resident shareholder's proportionate share of an S corporation's Utah taxable income.
     (b) A nonresident shareholder shall recognize the portion of an S corporation's Utah taxable income derived from Utah sources:
     (i) if the nonresident shareholder is subject to this chapter, in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions; or
     (ii) if the nonresident shareholder is subject to Chapter 10, Individual Income Tax Act, in accordance with Sections 59-10-117 and 59-10-118.

Amended by Chapter 110, 2003 General Session