(1)  Transactions for which an election has been made for federal purposes under Section 336(e), Internal Revenue Code, shall be treated as provided in this section. An election is not available for state purposes unless an election is made for federal purposes.

Terms Used In Utah Code 59-7-115

  • Adjusted income: means unadjusted income as modified by Sections 59-7-105 and 59-7-106. See Utah Code 59-7-101
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Business income: means the same as that term is defined in Section 59-7-302. See Utah Code 59-7-101
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: includes :
(a) entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue Code; and
(b) other organizations that are taxed as corporations for federal income tax purposes under the Internal Revenue Code. See Utah Code 59-7-101
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Income: includes losses. See Utah Code 59-7-101
  • Internal Revenue Code: means Title 26 of the United States Code as effective during the year in which Utah taxable income is determined. See Utah Code 59-7-101
  • return: includes a combined report. See Utah Code 59-7-101
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Unitary group: includes a captive real estate investment trust. See Utah Code 59-7-101
    • (2)  If an election is made under Section 336(e), Internal Revenue Code, the following shall apply:

    (a)  if the corporation is treated for federal purposes as having disposed of all of its assets and is a member of a unitary group immediately preceding the date of sale, the corporation shall be included in a combined return to the extent of its income through the date of sale, and the gain or loss on the deemed disposal of assets shall be included in the combined income of the unitary group;

    (b)  if the corporation is treated for federal purposes as having disposed of all of its assets and is not a member of a unitary group immediately preceding the date of sale, the corporation shall file a short period return for the period ending on the date of sale and shall include in such return the gain or loss on the deemed disposal of assets in its adjusted income; and

    (c)  any gain or loss which is not recognized for federal purposes on stock sold, exchanged, or distributed by a corporation pursuant to Section 336(e), Internal Revenue Code, may not be included in adjusted income.

    (3)  There is a rebuttable presumption that the gain or loss on the deemed disposition of assets constitutes business income.

    (4)  The new basis of assets of the corporation which is treated as having disposed of its assets shall be the same as determined for federal purposes.

    (5)  The corporation which is treated as having disposed of its assets shall be treated as a new corporation as of the day after the date of sale.

    (6)  The commission may prescribe such rules as necessary to provide for the equitable treatment of any transaction subject to Section 336(e), Internal Revenue Code.

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

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