59-10-210 - Fiduciary adjustments.
59-10-210. Fiduciary adjustments.
(1) A share of the fiduciary adjustments described in Subsection (2) shall be added to orsubtracted from unadjusted income:
(a) of:
(i) a resident or nonresident estate or trust; or
(ii) a resident or nonresident beneficiary of a resident or nonresident estate or trust; and
(b) as provided in this section.
(2) For purposes of Subsection (1), the fiduciary adjustments are the following amounts:
(a) the additions to and subtractions from unadjusted income of a resident or nonresidentestate or trust required by Section 59-10-202; and
(b) a tax credit claimed by a resident or nonresident estate or trust as allowed by:
(i) Section 59-6-102;
(ii) Part 10, Nonrefundable Tax Credit Act;
(iii) Part 11, Refundable Tax Credit Act;
(iv) Section 59-13-202;
(v) Section 63M-1-413; or
(vi) Section 63M-1-504.
(3) (a) The respective shares of an estate or trust and its beneficiaries, including for thepurpose of this allocation a nonresident beneficiary, in the state fiduciary adjustments, shall beallocated in proportion to their respective shares of federal distributable net income of the estateor trust.
(b) If the estate or trust described in Subsection (3)(a) has no federal distributable netincome for the taxable year, the share of each beneficiary in the fiduciary adjustments shall beallocated in proportion to that beneficiary's share of the estate or trust income for the taxable yearthat is, under state law or the governing instrument, required to be distributed currently plus anyother amounts of that income distributed in that taxable year.
(c) After making the allocations required by Subsections (3)(a) and (b), any balance ofthe fiduciary adjustments shall be allocated to the estate or trust.
(4) (a) The commission shall allow a fiduciary to use a method for determining theallocation of the fiduciary adjustments described in Subsection (2) other than the methoddescribed in Subsection (3) if using the method described in Subsection (3) results in an inequity:
(i) in allocating the fiduciary adjustments described in Subsection (2); and
(ii) if the inequity is substantial:
(A) in amount; and
(B) in relation to the total amount of the fiduciary adjustments described in Subsection(2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules authorizing a fiduciary to use a method for determining theallocation of the fiduciary adjustments described in Subsection (2) other than the methoddescribed in Subsection (3) if using the method described in Subsection (3) results in an inequity:
(i) in allocating the fiduciary adjustments described in Subsection (2); and
(ii) if the inequity is substantial:
(A) in amount; and
(B) in relation to the total amount of the fiduciary adjustments described in Subsection(2).
Amended by Chapter 382, 2008 General Session
Amended by Chapter 389, 2008 General Session