Utah Code 59-7-111. Safe harbor lease provisions

(1)

Income: includes losses. See Utah Code 59-7-101
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
Property: includes both real and personal property. See Utah Code 68-3-12.5
Safe harbor lease: means a lease that qualified as a safe harbor lease under Section 168, Internal Revenue Code. See Utah Code 59-7-101
Unadjusted income: includes deferred foreign income described in Section 965(a), Internal Revenue Code. See Utah Code 59-7-101

(a)

For purchasers or lessors of safe harbor leases, the following additions shall be made to unadjusted income:

(i)	interest expense; and

(ii)	depreciation claimed on safe harbor lease property.

(b)

For purchasers or lessors of safe harbor leases, the following subtractions shall be made from unadjusted income:

(i)	rental income; and

(ii)	amortization of the purchase price of tax benefits.

(2)

(a)

For sellers or lessees of safe harbor leases the following additions shall be made from unadjusted income:

(i)	the amount of gain on the sale of federal tax benefits; and

(ii)	rental expense on safe harbor lease property.

(b)

For sellers or lessees of safe harbor leases the following subtractions shall be made to unadjusted income:

(i)	interest income; and

(ii)	depreciation on safe harbor lease property.

Repealed and Re-enacted by Chapter 169, 1993 General Session