59-10-1402 - Definitions.
59-10-1402. Definitions.
As used in this part:
(1) "Addition, subtraction, or adjustment" means:
(a) for a pass-through entity taxpayer that is classified as a C corporation for federalincome tax purposes, under Chapter 7, Corporate Franchise and Income Taxes:
(i) an addition to unadjusted income described in Section 59-7-105; or
(ii) a subtraction from unadjusted income described in Section 59-7-106;
(b) for a pass-through entity taxpayer that is classified as an individual, partnership, or Scorporation for federal income tax purposes:
(i) an addition to or subtraction from adjusted gross income described in Section59-10-114; or
(ii) an adjustment to adjusted gross income described in Section 59-10-115; or
(c) for a pass-through entity taxpayer that is classified as an estate or a trust for federalincome tax purposes:
(i) an addition to or subtraction from unadjusted income described in Section 59-10-202;or
(ii) an adjustment to unadjusted income described in Section 59-10-209.1.
(2) "Business income" means income arising from transactions and activity in the regularcourse of a pass-through entity's trade or business and includes income from tangible andintangible property if the acquisition, management, and disposition of the property constitutesintegral parts of the pass-through entity's regular trade or business operations.
(3) "C corporation" is as defined in Section 1361, Internal Revenue Code.
(4) "Commercial domicile" means the principal place from which the trade or business ofa business entity is directed or managed.
(5) "Derived from or connected with Utah sources" means:
(a) if a pass-through entity taxpayer is classified as a C corporation for federal incometax purposes, derived from or connected with Utah sources in accordance with Chapter 7, Part 3,Allocation and Apportionment of Income - Utah UDITPA Provisions; or
(b) if a pass-through entity or pass-through entity taxpayer is classified as an estate,individual, partnership, S corporation, or a trust for federal income tax purposes, derived from orconnected with Utah sources in accordance with Sections 59-10-117 and 59-10-118.
(6) "Nonbusiness income" means all income of a pass-through entity other than businessincome.
(7) "Nonresident business entity" means a business entity that does not have itscommercial domicile in this state.
(8) "Nonresident pass-through entity taxpayer" means a pass-through entity taxpayer thatis a:
(a) nonresident individual; or
(b) nonresident business entity.
(9) (a) "Pass-through entity" means a business entity that is:
(i) the following if classified as a partnership for federal income tax purposes:
(A) a general partnership;
(B) a limited liability company;
(C) a limited liability partnership; or
(D) a limited partnership;
(ii) an S corporation; or
(iii) a business entity similar to Subsection (9)(a)(i) or (ii):
(A) with respect to which the business entity's income, gain, loss, deduction, or credit isdivided among and passed through to one or more pass-through entity taxpayers; and
(B) as defined by the commission by rule made in accordance with Title 63G, Chapter 3,Utah Administrative Rulemaking Act.
(b) "Pass-through entity" does not include an estate or trust that is classified as an estateor trust for federal income tax purposes.
(10) "Pass-through entity taxpayer" means a resident or nonresident individual, a residentor nonresident business entity, or a resident or nonresident estate or trust:
(a) that is:
(i) for a general partnership, a partner;
(ii) for a limited liability company, a member;
(iii) for a limited liability partnership, a partner;
(iv) for a limited partnership, a partner;
(v) for an S corporation, a shareholder; or
(vi) for a business entity described in Subsection (9)(a)(iii), a member, partner,shareholder, or other title designated by the commission by rule made in accordance with Title63G, Chapter 3, Utah Administrative Rulemaking Act; and
(b) to which the income, gain, loss, deduction, or credit of a pass-through entity is passedthrough.
(11) "Resident business entity" means a business entity that is not a nonresident businessentity.
(12) "Resident pass-through entity taxpayer" means a pass-through entity taxpayer that isa:
(a) resident individual; or
(b) resident business entity.
(13) "Return" means a return that a pass-through entity taxpayer files:
(a) for a pass-through entity taxpayer that is classified as a C corporation for federalincome tax purposes, under Chapter 7, Corporate Franchise and Income Taxes; or
(b) for a pass-through entity taxpayer that is classified as an estate, individual,partnership, S corporation, or a trust for federal income tax purposes, under this chapter.
(14) "S corporation" is as defined in Section 1361, Internal Revenue Code.
(15) "Share of income, gain, loss, deduction, or credit of a pass-through entity" means:
(a) for a pass-through entity except for a pass-through entity that is an S corporation:
(i) for a resident pass-through entity taxpayer, the resident pass-through entity taxpayer'sdistributive share of income, gain, loss, deduction, or credit of the pass-through entity asdetermined under Section 704 et seq., Internal Revenue Code; and
(ii) for a nonresident pass-through entity taxpayer, the nonresident pass-through entitytaxpayer's distributive share of income, gain, loss, deduction, or credit of the pass-through entity:
(A) as determined under Section 704 et seq., Internal Revenue Code; and
(B) derived from or connected with Utah sources; or
(b) for an S corporation:
(i) for a resident pass-through entity taxpayer, the resident pass-through entity taxpayer'spro rata share of income, gain, loss, deduction, or credit of the S corporation, as determined
under Sec. 1366 et seq., Internal Revenue Code; or
(ii) for a nonresident pass-through entity taxpayer, the nonresident pass-through entitytaxpayer's pro rata share of income, gain, loss, deduction, or credit of the S corporation:
(A) as determined under Section 1366 et seq., Internal Revenue Code; and
(B) derived from or connected with Utah sources.
Amended by Chapter 312, 2009 General Session