2006 Utah Code - 59-10-303 (Superseded 01/01/07) — Nonresident\'s share of partnership income.

     59-10-303 (Superseded 01/01/07).   Nonresident's share of partnership income.
     (1) In determining the adjusted gross income of a nonresident partner of any partnership, there shall be included only that part derived from or connected with sources in this state of the partner's distributive share of items of partnership income, gain, loss, and deduction entering into his federal adjusted gross income, as such part is determined under rules prescribed by the commission in accordance with the general rules in Section 59-10-116.
     (2) In determining the sources of a nonresident partner's income, no effect shall be given to a provision in the partnership agreement which:
     (a) characterizes payments to the partner as being for services or for the use of capital, or allocates to the partner, as income or gain from sources outside this state, a greater proportion of his distributive share of partnership income or gain than the ratio of partnership income or gain from sources outside this state to partnership income or gain from all sources, except as authorized in Subsection (4);
     (b) allocates to the partner a greater proportion of a partnership item of loss or deduction connected with sources in this state than his proportionate share, for federal income tax purposes, of partnership loss or deduction generally, except as authorized in Subsection (4).
     (3) Any modification described in Section 59-10-114 that relates to an item of partnership income, gain, loss, or deduction, shall be made in accordance with the partner's distributive share for federal income tax purposes of the item to which the modification relates, but limited to the portion of such item derived from or connected with sources in this state.
     (4) The commission may, on application, authorize the use of such other methods of determining a nonresident partner's portion of partnership items derived from or connected with sources in this state, and the modifications related thereto, as may be appropriate and equitable, on such terms and conditions as it may require.
     (5) A nonresident partner's distributive share of items of income, gain, loss, or deduction shall be determined under Subsection 59-10-302(2). The character of partnership items for a nonresident partner shall also be determined under Subsection 59-10-302(1).

Renumbered and Amended by Chapter 2, 1987 General Session