State Codes and Statutes

Statutes > Utah > Title-59 > Chapter-07 > 59-7-107

59-7-107. Basis.
(1) (a) For property acquired after December 31, 1993, basis shall be determinedpursuant to the Internal Revenue Code without reference to Section 1502, Internal Revenue Code,or regulations promulgated under that section.
(b) Notwithstanding Subsection (1)(a), adjustments for basis in a combined report may beestablished by rules promulgated by the tax commission.
(2) For property acquired after December 31, 1930, but before January 1, 1994, basisshall be determined under Utah law in effect at the time the property was acquired.
(3) (a) Except as provided in Subsection (3)(c), the basis for determining the gain or lossfrom the sale or other disposition of property acquired before January 1, 1931, shall be:
(i) the cost of such property or in the case of property acquired by gift or transfer in trust,the fair market value of such property at the time of such acquisition; or
(ii) the fair market value of such property as of January 1, 1931, whichever is greater.
(b) In determining the fair market value of stock in a corporation as of January 1, 1931,due regard shall be given to the fair market value of the assets of the corporation as of that date.
(c) (i) In determining the basis for inventory acquired before January 1, 1931, if theproperty should have been included in the last inventory, the basis shall be the value of thatproperty at the last inventory.
(ii) In determining the basis for bequests and devises acquired before January 1, 1931, ifpersonal property was acquired by specific bequest, or if real property was acquired by general orspecific devise, the basis shall be the fair market value of the property at the time of the death ofthe decedent. In all other cases if the property was acquired by will, the basis shall be the fairmarket value of the property at the time of the distribution to the taxpayer.
(iii) In determining the basis for property acquired before January 1, 1931, duringaffiliation in which a combined report is filed under either Section 59-7-402 or 59-7-403, thebasis shall be determined in accordance with rules prescribed by the commission.
(4) If any property subject to taxation under this chapter was acquired before January 1,1931, the basis of such property, if other than the fair market value as of January 1, 1931, shall bediminished in the amount of exhaustion, wear and tear, obsolescence, and depletion actuallysustained before such date.

Repealed and Re-enacted by Chapter 169, 1993 General Session