S Corporation Franchise Or Income Tax Return And Instructions For Form Tc20s Page 7
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32Line 11 – Deduction Amount Applies To
Instructions for Schedule A –
Income Greater Than Zero
Utah Taxable Income and
Multiply line 10 by (.15). If line 10 is a loss, no
deduction amount is allowed.
Tax Due
Line 12 – Net Taxable Income
Subtract line 11 from line 10.
Line 13 – Tax Rate
Line 1 – Income/Loss
The tax rate is .07.
Enter the amount of income or loss (R865-6F-35) as
Line 14 – Calculation of Tax
taken from federal form 1120S, Schedule K, line 23.
Add lines 14a through 14c.
Line 2 – Charitable Contributions Addition
14a – Calculation of Tax
Add charitable contributions that were deducted on
Multiply line 12 by line 13.
federal form 1120S, Schedule K, line 7.
14b – Built-in and Other Gains Tax
Line 3 – Foreign Taxes
In accordance with the provisions of UCA §59-7-
Add foreign taxes that were deducted on federal
701, gains or income subject to the federal corpo-
form 1120S, Schedule K, Line 15(f).
ration tax are also subject to the Utah S Corporation
Line 4 – Net Income
Franchise or Income Tax. The most common trans-
4a – Total Income before Nonbusiness Income.
actions that occur under federal provisions, in-
Add Lines 1, 2 and 3.
clude: built-in gains, capital gains, federal recap-
4b– Nonresident Income
ture amounts of prior year’s investment credits,
LIFO recapture amounts, and any other similar
Schedule A, line 4a multiplied by the percentage of
type transaction. These gains or income should be
nonresident shares on line 1b of S Corporation
apportioned (see Schedule J) and multiplied by the
Franchise or Income Tax return, form TC-20S.
current tax rate of 5 percent. Attach a schedule to
Line 5 – Nonbusiness Income Allocation
form TC-20S that provides the necessary details of
Add line 5a and line 5b.
gains or income being reported.
5a – Nonbusiness Income Allocated to Utah
14c – Amended Returns Only
Schedule H, line 13 multiplied by the percent of
(Previous refunds)
nonresident shareholders on line 1b of S Corpora-
This line is used only for amended returns. When
tion Franchise Tax return, form TC-20S.
filing an amended return, enter the amount of all
5b – Nonbusiness Income Allocated
refunds, credits, or offsets of corporation franchise
Outside Utah
or income tax received for the tax year being
Schedule H, line 26 multiplied by the percent of
amended. You should exclude refund interest from
nonresident shareholders on line 1b of S Corpora-
this amount. This amount is then added into the tax
tion Franchise or Income Tax return, form TC-20S.
amount on line 14.
Line 6 – Net Income Subject to Apportionment
Line 15 – Refundable Credits and
Previous Payments
Subtract line 5 from line 4b.
Line 7 – Apportionment Fraction
Add lines 15a through 15d.
15a – Mineral Production Withholding Credit
100 percent or bring forward fraction from Sched-
ule J, line 7.
(R865-14W-1)
Line 8 – Net Income Apportioned to Utah
A refundable credit is allowed for Utah tax withheld
from the corporation’s mineral production pay-
Multiply line 6 by line 7.
ments as indicated on form TC-675R or federal
Line 9 – Nonbusiness Income Allocated to
schedule K-1(s). Form TC-675R or K-1 must be
Utah
attached when credit is claimed.
Enter amount reported on line 5a above.
15b – Credit for Agricultural Off-Highway
Line 10 – Utah Taxable Income/Loss
Gasoline and Undyed Diesel Tax
Add line 8 and line 9.
(UCA §59-13-202)
Nonresident shareholders should transfer their pro
Attach federal form 1040 Schedule F. There is no
rata share of taxable income before deduction
state form for this credit. Make sure you keep all
amount to their Utah Individual Income Tax Return,
personal records, forms, and worksheets to sup-
TC-40, line 23, column A.
port this credit.
For tax years beginning on or after 1/1/94, losses
are passed through to the individual shareholders
and are not available for carryforward or carryback.
Page 5
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