Regardless of whether or how an item of income, gain, loss, deduction, or credit is characterized for federal income tax purposes, that item of income, gain, loss, deduction, or credit is from the same source and incurred in the same manner for a
pass-through entity taxpayer as if the item of income, gain, loss, deduction, or credit is:
| (1) |
realized directly from the source from which the item of income, gain, loss, deduction, or credit is realized by the pass-through entity; or |
Terms Used In Utah Code 59-10-1404
- Pass-through entity: means a business entity that is:
| (a) | the following if classified as a partnership for federal income tax purposes:| (i) | a general partnership; |
| (ii) | a limited liability company; |
| (iii) | a limited liability partnership; or |
| (iv) | a limited partnership; |
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| (c) | an estate or trust with respect to which the estate's or trust's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; or |
| (d) | a business entity similar to Subsections (11)(a) through (c):| (i) | with respect to which the business entity's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; and |
| (ii) | as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 59-10-1402- Taxpayer: means any of the following that has income subject in whole or part to the tax imposed by this chapter:
| (ii) | an estate, a trust, or a beneficiary of an estate or a trust that is not a pass-through entity or a pass-through entity taxpayer; |
| (iii) | a pass-through entity; or |
| (iv) | a pass-through entity taxpayer. See Utah Code 59-10-103 |
| (2) |
incurred in the same manner as incurred by the pass-through entity. |
Amended by Chapter 312, 2009 General Session
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