2006 Utah Code - 59-10-117 (Superseded 01/01/07) — Federal adjusted gross income derived from Utah sources.

     59-10-117 (Superseded 01/01/07).   Federal adjusted gross income derived from Utah sources.
     (1) For the purpose of Section 59-10-116, federal adjusted gross income derived from Utah sources shall include those items includable in federal "adjusted gross income" (as defined by Section 62 of the Internal Revenue Code) attributable to or resulting from:
     (a) the ownership in this state of any interest in real or tangible personal property (including real property or property rights from which "gross income from mining" as defined by Section 613(c) of the Internal Revenue Code is derived); or
     (b) the carrying on of a business, trade, profession, or occupation in this state.
     (2) For the purposes of Subsection (1):
     (a) Income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property shall constitute income derived from Utah sources only to the extent that such income is from property employed in a trade, business, profession, or occupation carried on in this state.
     (b) Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income, gain, loss, and deduction connected with Utah sources, under rules prescribed by the commission, but otherwise shall be determined in the same manner as the corresponding federal deductions.
     (c) Salaries, wages, commissions, and compensation for personal services rendered outside this state shall not be considered to be derived from Utah sources.
     (d) A nonresident shareholder's distributive share of ordinary income, gain, loss, and deduction derived from or connected with Utah sources shall be determined under Section 59-10-118.
     (e) A nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of his trade or business, shall not be considered to carry on a trade, business, profession, or occupation in this state solely by reason of the purchase or sale of property for his own account.
     (f) If a trade, business, profession, or occupation is carried on partly within and partly without this state, items of income, gain, loss, and deductions derived from or connected with Utah sources shall be determined in accordance with the provisions of Section 59-10-118.
     (g) A nonresident partner's distributive share of partnership income, gain, loss, and deduction derived from or connected with Utah sources shall be determined under Section 59-10-303.
     (h) The share of a nonresident estate or trust and nonresident beneficiaries of any estate or trust in income, gain, loss, and deduction derived from or connected with Utah sources shall be determined under Section 59-10-207.
     (i) Any dividend, interest, or distributive share of income, gain, or loss from a real estate investment trust, as defined in Section 59-7-116.5, distributed or allocated to a nonresident investor in the trust, including any shareholder, beneficiary, or owner of a beneficial interest in the trust, shall be income from intangible personal property under Subsection (2)(a), and shall constitute income derived from Utah sources only to the extent the nonresident investor is employing its beneficial interest in the trust in a trade, business, profession, or occupation carried on by the investor in this state.

Amended by Chapter 311, 1995 General Session
Amended by Chapter 345, 1995 General Session