S Corporation Franchise Or Income Tax Return And Instructions For Form Tc20s Page 27
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32ending of the tax period. However, monthly values
property is shipped from an office, store, ware-
may be used or required if monthly averaging more
house, factory, or other place of storage in this state
clearly reflects the average value of the corporation’s
and: (1) the purchaser is the United States govern-
property.
ment, or (2) the corporation is not taxable in the
state of the purchaser.
A supporting schedule should be attached when-
ever monthly averaging is used.
Nexus: The jurisdictional link that must be present
before a state may tax a corporation upon its
Line 2 – Total Tangible Property
activities within a state’s borders.
Enter totals of lines 1(a)-1(e) in the respective
Note: Exception to the above method for securities
columns.
brokerage businesses can be found in UCA §59-7-
Line 2(a) – Property Fraction
319(3).
Determine property fraction: column A, line 2 di-
Line 5 – Total Sales and Service
vided by column B, line 2.
Enter totals of lines 4(a)-4(e) in their respective
Line 3 – Wages, Salaries, Commissions, and
columns.
Other Includable Compensation
Line 5(a) – Sales Fraction
Wages, salaries, commissions, and other includ-
Determine sales fraction: column A, line 5 divided
able compensation paid to employees for personal
by column B, line 5. Overall sales, including Utah,
services must be included in the Utah factor to the
are listed in column B.
extent that the services, for which the compensa-
tion was paid, were rendered in Utah.
Line 6 – Total Fraction
Enter total of lines 2(a), 3(a), and 5(a).
Compensation is paid in the state if
Line 7 – Apportionment Fraction
1. The individual’s service is performed entirely
within the state;
Calculate the apportionment fraction to six deci-
mals: Line 6 divided by the number of factors used
2. The individual’s service is performed both within
(typically 3 - property, wages, and sales). If one or
and outside the state, but the service per-
more of the factors are not present (i.e., there is a
formed outside the state is incidental to the
zero represented on lines 2, 3, or 5 in column B),
individual’s service within the state; or
divide by the number of factors present. Enter
3. Some of the service is performed in the state
apportionment fraction here and on Schedule A,
and
line 7.
a. The base of operations or, if there is no
Specialized Apportionment Rules
base of operation, the place from where the
service is directed or controlled within the
Specialized apportionment rules apply for:
state, or
•
Trucking Companies (R865-6F-19)
b. The base of operations or the place where
•
Railroads (R865-6F-29)
the service is directed or controlled is not in
•
Publishing Companies (R865-6F-31)
any state where some part of the service is
performed, but the individual’s residence is
•
Financial Institutions (R865-6F-32)
in this state.
•
Telecommunication (R865-6F-33)
Amounts reportable for employment security pur-
poses may ordinarily be used to determine the
wage factor.
Line 3(a) – Wages Fraction
Column A, line 3 divided by column B, line 3. Overall
wages, including Utah, are listed in column B.
Lines 4(a)-4(e) – Gross Receipts from Business
The sales factor is the percentage the sales or
charges for services within the state for the taxable
year bear to the overall sales for the taxable year.
Gross receipts from the performance of services
are in this state to the extent the services are
performed in this state.
Sales of tangible personal property are in this state
if the property is delivered or shipped to a pur-
chaser within this state regardless of the F.O.B.
point or other conditions of the sale, or if the
Page 9
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