State Codes and Statutes

Statutes > Utah > Title-59 > Chapter-10 > 59-10-117

59-10-117. State taxable income derived from Utah sources.
(1) For purposes of Section 59-10-116, state taxable income includes those itemsincludable in state taxable income 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 bySection 613(c), 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 derivedfrom Utah sources only to the extent that the income is from property employed in a trade,business, profession, or occupation carried on in this state;
(b) a deduction with respect to a capital loss, net long-term capital gain, or net operatingloss shall be based solely on income, gain, loss, and deduction connected with Utah sources,under rules prescribed by the commission in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, but otherwise shall be determined in the same manner as thecorresponding federal deductions;
(c) a salary, wage, commission, or compensation for personal services rendered outsidethis state may not be considered to be derived from Utah sources;
(d) a nonresident shareholder's distributive share of ordinary income, gain, loss, anddeduction derived from or connected with Utah sources shall be determined under Section59-10-118;
(e) a nonresident, other than a dealer holding property primarily for sale to customers inthe ordinary course of the dealer's trade or business, may not be considered to carry on a trade,business, profession, or occupation in this state solely by reason of the purchase or sale ofproperty for the nonresident's own account;
(f) if a trade, business, profession, or occupation is carried on partly within and partlywithout this state, an item of income, gain, loss, or a deduction derived from or connected withUtah sources shall be determined in accordance with Section 59-10-118;
(g) a nonresident partner's distributive share of partnership income, gain, loss, deduction,or credit derived from or connected with Utah sources shall be determined under Part 14,Pass-Through Entities and Pass-Through Entity Taxpayers Act;
(h) the share of a nonresident estate or trust or a nonresident beneficiary of any estate ortrust in income, gain, loss, or deduction derived from or connected with Utah sources shall bedetermined under Section 59-10-207; and
(i) any dividend, interest, or distributive share of income, gain, or loss from a real estateinvestment trust, as defined in Section 59-7-101, distributed or allocated to a nonresident investorin 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 constituteincome derived from Utah sources only to the extent the nonresident investor is employing itsbeneficial interest in the trust in a trade, business, profession, or occupation carried on by theinvestor in this state.

Amended by Chapter 312, 2009 General Session