2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions (Page 14 of 19) in pdf

Line 11 – Refund Received from Utah Educa-

ration in the unitary group regardless of the country in

which the corporation is incorporated or conducts busi-

tional Savings Plan (UESP)

ness. Add any income or loss before extraordinary

A participant in the Utah Educational Savings Plan

items and prior period adjustments and before the

should receive a “Statement of Withholding For Utah

provision for income, war profits and excess profits

Educational Savings Plan,” form TC-675H, from the

taxes as reported on federal form 5471 for foreign

UESP Trustee. Enter the amount from line 1 of form

corporations.

TC-675H. Keep form TC-675H with your records. If you

have any questions about UESP, call 1-800-418-2551.

Line 14 – Income/Loss of Unitary Corporations

Not Included on the Federal

Line 12 – Income/Loss From IRC Section 936

Consolidated Return

Corporations

Add income and losses of unitary corporations owned

IRC Section 936 corporations are fully includable in the

greater than 50 percent whose income or loss is not

combined report. Add income/loss from IRC Section

included on the federal consolidated return. Refer to

936 corporations.

“Combined Reports” in the General Instructions for

Line 13 – Foreign Income/Loss For “Worldwide”

additional information on unitary combined filings.

Combined Filers

Line 15 – Total Additions

Corporations electing to file a worldwide combined

Add lines 1 through 14. Enter the result on line 15 and

report must include income and losses of each corpo-

on Schedule A, line 2.

Instructions for Schedule C –

Subtractions from Unadjusted Income

Subtract from income:

Line 1 – Intercompany Dividend Elimination

Enter dividends received from U.S. corporations owned

SHL Purchaser/Lessor

greater than 50 percent whose income is included on

1. Rental income

this return and whose dividend has not been previously

2. Amortization of the purchase price of tax benefits

eliminated.

(purchase price of tax benefits must be capitalized)

Line 2 – Foreign Dividend Gross-up

SHL Seller/Lessee

Enter the foreign dividend gross-up included in gross

1. Interest income

income for federal income tax purposes under IRC

Section 78.

2. Depreciation on SHL property

Line 3 – Net Capital Loss

Line 6 – Income Previously Taxed

The corporation must include its capital losses on this

Enter any income on the federal corporate return, form

line if an election is being made to take a deduction for

1120 or 1120-A that was previously taxed by Utah.

capital losses incurred in the taxable year. If a current

Attach supporting schedules and documentation.

year deduction is not taken, the loss must be carried

Line 7 – 50 percent Exclusion for Dividends From

forward as provided in IRC Section 1212(a)(1)(B) and

(C).

Unitary Foreign Subsidiaries

Enter 50 percent of the dividends deemed received or

Line 4a – Federal Jobs Credit

received from subsidiaries that are members of the

Enter the amount of salary expense reduction due to

unitary group and are organized or incorporated out-

claiming the federal jobs credit under IRC Section 51.

side of the United States, unless those subsidiaries are

included in a combined report. In that case, the divi-

Line 4b – Research and Development

dends are eliminated as an intercompany transaction.

Enter qualified research and basic research expense

For corporations filing a water’s edge combined report,

reduction due to claiming the research and develop-

the 50-percent exclusion includes dividends from uni-

ment credit under IRC Section 41.

tary foreign corporations, foreign sales corporations

and subpart F income.

Line 4c – Clinical Testing Expense

Enter qualified clinical testing expense reduction due to

Line 8 – 50 percent Exclusion of “Foreign Oper-

claiming the federal orphan drug credit under IRC

ating Company” Income\Loss

Section 28.

Enter 50 percent of the adjusted income or loss of a

Line 4d – Other Federal Credits

foreign operating company unless the taxpayer is filing

a worldwide combined report. A foreign operating com-

Enter any expense reduction attributable to claiming

pany is a corporation (other than an IRC Section 936

any other federal credit. Attach applicable federal form.

corporation) incorporated in the United States with 80

Line 5 – Safe Harbor Lease (SHL) Adjustments

percent or more of its business activity, based on the

average of the property and payroll factors, conducted

The effects of any remaining SHL adjustments must be

outside the United States.

reversed for Utah purposes. For general SHL informa-

tion, see the instructions for Schedule B, line 3.

Page 13

2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions Page 14

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