2006 Utah Code - 59-10-207 — Share of a nonresident estate or trust and beneficiaries in state taxable income.

     59-10-207.   Share of a nonresident estate or trust and beneficiaries in state taxable income.
     (1) The share of a nonresident estate or trust and its beneficiaries in items of income, gain, loss, and deduction entering into the definition of distributable net income and the share for purposes of Section 59-10-116 of a nonresident beneficiary of any estate or trust in estate or trust income, gain, loss, and deduction shall be determined as follows:
     (a) To the amount of items of income, gain, loss, and deduction that enter into the definition of distributable net income there shall be added or subtracted, as the case may be, the modifications described in Sections 59-10-202 and 59-10-210 to the extent they relate to items of income, gain, loss, and deduction that also enter into the definition of distributable net income. No modification shall be made under this section that has the effect of duplicating an item already reflected in the definition of distributable net income.
     (b) The amount determined under Subsection (1)(a) shall be allocated among the estate or trust and its beneficiaries (including solely for the purpose of this allocation, resident beneficiaries) in proportion to their respective shares of federal distributable net income. The amounts so allocated shall have the same character as for federal income tax purposes.
     (c) If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary in the net amount determined under Subsection (1)(a) shall be in proportion to his share of the estate or trust income for such year, under state law or the terms of the governing instrument, that is required to be distributed currently and any other amounts of such income distributed in such year. Any balance of such net income shall be allocated to the estate or trust.
     (2) The commission may by rule establish such other method or methods of determining the respective shares of the beneficiaries and of the estate or trust in its income derived from sources in this state, and in the modifications related thereto, as may be appropriate and equitable. The fiduciary may elect to use any other methods prescribed in this subsection only when the allocation of such respective shares under this section would result in an inequity in the allocation which is substantial both in amount and in relation to the total amount of the modifications referred to in Subsection (1)(a).

Amended by Chapter 223, 2006 General Session