{"data":{"id":"us-ut/utah-code-59-10-1405","jurisdiction":"us-ut","citation":"Utah Code § 59-10-1405","heading":"Nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity -- In determining source of nonresident pass-through entity taxpayer's income certain provisions of pass-through entity agreement may not be considered -- Rulemaking authority.","body":"(1)\n(a) Except as provided in Subsection (3), in determining the taxable income of a nonresident pass-through entity taxpayer, an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity shall be made in accordance with this Subsection (1).\n(b) For a nonresident pass-through entity taxpayer of a pass-through entity except for a pass-through entity that is an S corporation, the nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:\n(i) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the nonresident pass-through entity taxpayer's distributive share of the item of income, gain, loss, deduction, or credit:\n(A) for federal income tax purposes;\n(B) determined under Section 704 et seq., Internal Revenue Code; and\n(C) derived from or connected with Utah sources; or\n(ii) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the nonresident pass-through entity taxpayer's distributive share of income, gain, loss, deduction, or credit:\n(A) relating to the pass-through entity generally;\n(B) for federal income tax purposes;\n(C) under Section 704 et seq., Internal Revenue Code; and\n(D) derived from or connected with Utah sources.\n(c) For a nonresident pass-through entity taxpayer of a pass-through entity that is an S corporation, the nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit is:\n(i) if the item of income, gain, loss, deduction, or credit is required to be taken into account separately for federal income tax purposes, the nonresident pass-through entity taxpayer's pro rata share of the item of income, gain, loss, deduction, or credit:\n(A) for federal income tax purposes;\n(B) determined under Section 1366 et seq., Internal Revenue Code; and\n(C) derived from or connected with Utah sources; or\n(ii) if the item of income, gain, loss, deduction, or credit is not required to be taken into account separately for federal income tax purposes, determined in accordance with the nonresident pass-through entity taxpayer's pro rata share of the item of income, gain, loss, deduction, or credit:\n(A) relating to the pass-through entity generally;\n(B) for federal income tax purposes;\n(C) under Section 1366 et seq., Internal Revenue Code; and\n(D) derived from or connected with Utah sources.\n(2) In determining the source of a nonresident pass-through entity taxpayer's income, the following provisions in a pass-through entity agreement may not be considered:\n(a) a provision that allocates to the nonresident pass-through entity taxpayer, as income, gain, or credit from a source outside this state, a greater proportion of the nonresident pass-through entity taxpayer's share of income, gain, or credit of the pass-through entity than the ratio of income, gain, or credit of the pass-through entity from sources outside this state to income, gain, or credit of the pass-through entity from all sources; or\n(b) a provision that allocates to the nonresident pass-through entity taxpayer a greater proportion of an item of loss or deduction of the pass-through entity derived from or connected with Utah sources than the taxpayer's share of loss or deduction generally:\n(i) relating to the pass-through entity; and\n(ii) for federal income tax purposes.\n(3) The commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, authorize the use of a calculation other than the calculation provided in Subsection (1), for determining a nonresident pass-through entity taxpayer's share of an addition, subtraction, or adjustment that relates to an item of income, gain, loss, deduction, or credit of a pass-through entity derived from or connected with Utah sources if:\n(a) the nonresident pass-through entity taxpayer applies to the commission; and\n(b) the commission finds that the use of the calculation is appropriate and equitable.","path":["Title 59 Revenue and Taxation","Chapter 59-10 Individual Income Tax Act","Part 59-10-14 Pass-Through Entities and Pass-Through Entity Taxpayers Act"],"source_url":"https://le.utah.gov/xcode/Title59/Chapter10/59-10-S1405.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"1cb08399b2b4598101be0f1f4363eaf448c339f5ce9ab9a41cb650beca843488","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-59-10-1404.5","next":"us-ut/utah-code-59-12-102"},"notice":"GroundRules: Original legal text. Not legal advice."}