Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions - 2011 Page 16
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25Schedule B – Additions to
Unadjusted Income Instructions
Line 5 – Federal Deductions Taken Previously
Line 1 – Interest from State Obligations
on a Utah Return
Enter interest from bonds, notes and other evidences of
indebtedness issued by any state of the United States,
Enter any deduction on this year’s federal return that
including any agency and instrumentality of a state of
was deducted on a prior year Utah return.
the United States.
Line 6 – Federal Charitable Contributions
Lines 2a - 2e – Add Taxes Deducted to
Enter any federal charitable contributions from federal
Determine Income
form 1120, line 19.
Amounts included in federal taxable income from re-
Line 7 – Gain (Loss) on Sections
funds of the following taxes should be netted against
338(h)(10) or 336(e)
similar taxes on the appropriate lines.
Enter the amount of any gain or loss determined under
Line 2a – Income Taxes Paid to Any State
UC §59-7-114(3) regarding a target corporation under
Enter taxes imposed by and paid to any state that are
IRC §338, if that gain or loss has not been included in
measured by income.
income, and the amount of any gain or loss determined
under UC §59-7-115 regarding corporations treated for
Line 2b – Franchise or Privilege Taxes Paid to
federal purposes as having disposed of its assets under
Any State
IRC §336(e), if that gain or loss has not been included
Enter franchise taxes paid by a corporation to any
in income.
state for the privilege of doing business or exercising
The purpose of this addition is to make sure the gain
its corporate franchise.
or loss on IRC §§338(h)(10) and 336(e) transactions
are treated similarly for Utah and federal purposes as
Line 2c – Corporate Stock Taxes Paid to
a deemed sale of assets. The gain or loss is only added
Any State
if it has not already been included in income.
Enter corporate stock taxes paid to any state.
Line 8 – Adjustments Due to Basis Difference
Line 2d – Taxes Paid to a Foreign Country
Utah laws generally follow the Internal Revenue Code
Enter any income, franchise, or capital stock taxes im-
for depreciation, amortization and basis. However,
posed by a foreign country, a United States possession
basis differences occasionally arise due to differences
or the Commonwealth of Puerto Rico and paid during
between Utah and federal laws in limited instances.
the taxable year.
Some examples include an IRC §338 election in a tax
year beginning prior to Jan. 1, 1994; and adjustments
Line 2e – Business and Occupation Taxes
attributed to the federal consolidated rules under IRC
Paid to Any State
§1502. A company may not deduct basis differences
Enter business and occupation taxes deducted for
generated by errors in prior returns in years when Utah
federal purposes.
and federal depreciation or amortization amounts are
required to be the same.
Line 3 – Safe Harbor Lease (SHL) Adjustments
SHLs originated from adjustments primarily available
Line 9 – Expenses Attributable to 50 percent
to businesses during the years 1981 and 1982 under
Unitary Foreign Dividend Exclusion
ERTA. These provisions allowed transfers of certain
Enter any expenses directly and indirectly attributable to
tax benefi ts for federal tax purposes. However, Utah
the dividends from subsidiaries excluded on Schedule
did not adopt these provisions and the effects of any
C, line 7 (i.e., 50 percent exclusion of dividends from
remaining SHL adjustments must be reversed for Utah
unitary foreign subsidiaries). To calculate indirect inter-
purposes.
est expense attributable to excluded dividends:
Add to income:
1. Divide the taxpayer’s average investment in divi-
SHL Purchaser/Lessor
dend paying subsidiaries by the taxpayer’s average
investment in total assets.
1. Interest expense
2. Multiply the result by the total interest expense.
2. Depreciation claimed on SHL property
SHL Seller/Lessee
Line 10 – Installment Sales Income Previously
Reported for Federal but Not Utah
1. Amount of gain on the sale of federal tax benefi ts
Purposes
2. Rental expense on SHL property
Add any installment sales income from installment
sales made in tax years beginning before Jan. 1, 1994
Line 4 – Capital Loss Carryover
if the Utah installment provisions of former UC §59-7-
Enter any capital losses deducted on a Utah corporate
119 were used. If the Utah installment provisions were
return in previous years, but used to offset capital gains
used on the Utah return, then a timing difference was
on this year’s federal return.
created between federal and Utah.
Page 14
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial