State Codes and Statutes

Statutes > Utah > Title-59 > Chapter-07 > 59-7-114

59-7-114. Section 338, Internal Revenue Code -- Elections.
(1) Transactions for which an election has been made or considered to be made forfederal purposes under Section 338, Internal Revenue Code, shall be treated as provided in thissection. An election is not available for state purposes unless an election is made or considered tobe made for federal purposes.
(2) If an election is made or considered to be made for federal purposes under Section338, Internal Revenue Code, other than under Subsection 338(h)(10):
(a) the target corporation shall file a separate entity one-day tax return for state purposes,as is required for federal purposes, and shall include in such return the gain or loss on the deemedsale of assets in its adjusted income;
(b) the gain or loss on the deemed sale of assets shall be apportioned to this state usingthe apportionment fraction of the target corporation calculated on a separate entity basis for themost recent preceding taxable year consisting of 180 days or more; and
(c) the due date of the one-day return shall be the same as the due date of the returnwhich includes the taxable period of the target corporation which immediately precedes theone-day return.
(3) If an election is made for federal purposes under Subsection 338(h)(10), InternalRevenue Code, the following shall apply:
(a) if the target corporation is a member of a unitary group immediately preceding theacquisition date, the target corporation shall be included in a combined return to the extent of itsincome through the acquisition date, and the gain or loss on the deemed sale of assets shall beincluded in the combined income of the unitary group;
(b) if the target corporation is not a member of a unitary group immediately preceding theacquisition date, the target corporation shall file a short period return for the period ending on theacquisition date and shall include in such return the gain or loss on the deemed sale of assets in itsadjusted income; and
(c) any gain or loss which is not recognized for federal purposes on stock sold orexchanged by a member of a selling consolidated group as defined in Section 338, InternalRevenue Code, may not be included in the adjusted income of the selling corporation.
(4) There is a rebuttable presumption that the gain or loss on the deemed sale of assetsconstitutes business income.
(5) The new basis of the target corporation's assets shall be determined under Section338, Internal Revenue Code.
(6) The target corporation shall be treated as a new corporation as of the day after theacquisition date.
(7) The commission may prescribe such rules as necessary to provide for the equitabletreatment of any transaction subject to Section 338, Internal Revenue Code.

Amended by Chapter 9, 2001 General Session

State Codes and Statutes

Statutes > Utah > Title-59 > Chapter-07 > 59-7-114

59-7-114. Section 338, Internal Revenue Code -- Elections.
(1) Transactions for which an election has been made or considered to be made forfederal purposes under Section 338, Internal Revenue Code, shall be treated as provided in thissection. An election is not available for state purposes unless an election is made or considered tobe made for federal purposes.
(2) If an election is made or considered to be made for federal purposes under Section338, Internal Revenue Code, other than under Subsection 338(h)(10):
(a) the target corporation shall file a separate entity one-day tax return for state purposes,as is required for federal purposes, and shall include in such return the gain or loss on the deemedsale of assets in its adjusted income;
(b) the gain or loss on the deemed sale of assets shall be apportioned to this state usingthe apportionment fraction of the target corporation calculated on a separate entity basis for themost recent preceding taxable year consisting of 180 days or more; and
(c) the due date of the one-day return shall be the same as the due date of the returnwhich includes the taxable period of the target corporation which immediately precedes theone-day return.
(3) If an election is made for federal purposes under Subsection 338(h)(10), InternalRevenue Code, the following shall apply:
(a) if the target corporation is a member of a unitary group immediately preceding theacquisition date, the target corporation shall be included in a combined return to the extent of itsincome through the acquisition date, and the gain or loss on the deemed sale of assets shall beincluded in the combined income of the unitary group;
(b) if the target corporation is not a member of a unitary group immediately preceding theacquisition date, the target corporation shall file a short period return for the period ending on theacquisition date and shall include in such return the gain or loss on the deemed sale of assets in itsadjusted income; and
(c) any gain or loss which is not recognized for federal purposes on stock sold orexchanged by a member of a selling consolidated group as defined in Section 338, InternalRevenue Code, may not be included in the adjusted income of the selling corporation.
(4) There is a rebuttable presumption that the gain or loss on the deemed sale of assetsconstitutes business income.
(5) The new basis of the target corporation's assets shall be determined under Section338, Internal Revenue Code.
(6) The target corporation shall be treated as a new corporation as of the day after theacquisition date.
(7) The commission may prescribe such rules as necessary to provide for the equitabletreatment of any transaction subject to Section 338, Internal Revenue Code.

Amended by Chapter 9, 2001 General Session


State Codes and Statutes

State Codes and Statutes

Statutes > Utah > Title-59 > Chapter-07 > 59-7-114

59-7-114. Section 338, Internal Revenue Code -- Elections.
(1) Transactions for which an election has been made or considered to be made forfederal purposes under Section 338, Internal Revenue Code, shall be treated as provided in thissection. An election is not available for state purposes unless an election is made or considered tobe made for federal purposes.
(2) If an election is made or considered to be made for federal purposes under Section338, Internal Revenue Code, other than under Subsection 338(h)(10):
(a) the target corporation shall file a separate entity one-day tax return for state purposes,as is required for federal purposes, and shall include in such return the gain or loss on the deemedsale of assets in its adjusted income;
(b) the gain or loss on the deemed sale of assets shall be apportioned to this state usingthe apportionment fraction of the target corporation calculated on a separate entity basis for themost recent preceding taxable year consisting of 180 days or more; and
(c) the due date of the one-day return shall be the same as the due date of the returnwhich includes the taxable period of the target corporation which immediately precedes theone-day return.
(3) If an election is made for federal purposes under Subsection 338(h)(10), InternalRevenue Code, the following shall apply:
(a) if the target corporation is a member of a unitary group immediately preceding theacquisition date, the target corporation shall be included in a combined return to the extent of itsincome through the acquisition date, and the gain or loss on the deemed sale of assets shall beincluded in the combined income of the unitary group;
(b) if the target corporation is not a member of a unitary group immediately preceding theacquisition date, the target corporation shall file a short period return for the period ending on theacquisition date and shall include in such return the gain or loss on the deemed sale of assets in itsadjusted income; and
(c) any gain or loss which is not recognized for federal purposes on stock sold orexchanged by a member of a selling consolidated group as defined in Section 338, InternalRevenue Code, may not be included in the adjusted income of the selling corporation.
(4) There is a rebuttable presumption that the gain or loss on the deemed sale of assetsconstitutes business income.
(5) The new basis of the target corporation's assets shall be determined under Section338, Internal Revenue Code.
(6) The target corporation shall be treated as a new corporation as of the day after theacquisition date.
(7) The commission may prescribe such rules as necessary to provide for the equitabletreatment of any transaction subject to Section 338, Internal Revenue Code.

Amended by Chapter 9, 2001 General Session