2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions (Page 15 of 19) in pdf

In calculating this subtraction, no deduction is allowable

Line 12 – Dividends From Insurance Company

for foreign taxes.

Subsidiaries

Enter dividends received from subsidiaries owned

Line 9 – Gain or Loss on Certain Stock Sales

greater than 50 percent that are insurance companies

Enter the gain or loss on the sales of stock included in

taxed on their Utah premiums.

unadjusted income, yet not taxable for federal purposes

because the transaction is considered to be a deemed

Line 13 – Payments Made to the Utah Educa-

sale of assets under IRC Sections 338(h)(10) or 336(e).

tional Savings Plan (UESP)

A participant in the Utah Educational Savings Plan

The purpose of this subtraction is to avoid the double

should receive a “Statement of Withholding For Utah

taxation that would occur if both the gain on the stock

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

sale and the gain on the deemed sale of assets were

UESP Trustee. An amount deposited into UESP cannot

included in income. Utah law follows the federal statute

be deducted on the Utah return if already taken on the

that taxes the gain on the deemed sale of assets.

federal return. Include on this line the amount on line 1

of form TC-675H. Keep form TC-675H with your records.

Line 10 – Basis Adjustments

If you have any questions about UESP, call

Enter adjustments to gains, losses, depreciation ex-

1-800-418-2551.

pense, amortization expense and similar items due to

a difference between basis for federal and Utah pur-

Line 14 – Total Subtractions

poses as explained in instructions for Schedule B, line

Add lines 1 through 13. Enter the result on line 14 and

on Schedule A, line 3.

Line 11 – Interest Expense

Enter interest expense not deducted on the federal

corporate return under IRC Sections 265(b) or 291(e).

Instructions for Schedule D –

Utah Contributions Deduction

Compute deductions for Utah charitable contributions

Line 5a – Contributions to Qualified Sheltered

(UCA §59-7-109(2)).

Workshops

Enter the amount of the Qualified Sheltered Workshop

Line 1 – Apportionable Income Before

Cash Contribution Credit (code 02) claimed on Utah

Contributions Deduction

Schedule A, line 16.

Enter amount from Schedule A, line 6.

Line 5b – Deduction for High Technology Equip-

Line 2 – Utah Contribution Limitation Rate

ment

Charitable contributions for the current year, including

Enter the amount of the High Technology Equipment

excess contributions carried forward from a prior year,

Contribution Tax Credit (code 14) claimed on Utah

cannot exceed the contribution limitation. The contribu-

Schedule A, line 16.

tion limitation percentage rate is preprinted on this line

(see UCA §59-7-109(2)).

Line 6 – Utah Contribution Carryforward

Charitable contributions made in a taxable year begin-

Line 3 – Utah Contribution Limitation

ning on or after Jan. 1, 1994, which exceed the allow-

Multiply line 1 by the rate on line 2 and enter the

able deduction for Utah, may be carried forward to the

limitation amount. If line 1 is a loss, no contributions

five succeeding taxable years in the same manner as

deduction is allowed.

allowed under federal law. Enter the excess contribu-

tions carried forward to this year. Attach a schedule

Line 4 – Current Year Contribution

showing contributions made in taxable years beginning

Enter charitable contributions for the current year.

on or after Jan. 1, 1994 that exceed the Utah contribu-

tion limitation, that have not been previously deducted

Line 5 – Contributions Deducted on Federal

and are available to be carried forward to the current

Forms 1120 or 1120-A, line 19

year.

Utah law precludes a deduction for the following contri-

butions when a Utah credit is being claimed. If the

Line 7 – Total Contributions Available

contributions below were claimed as charitable deduc-

Subtract lines 5a and 5b from line 4 and add line 6 to the

tions on federal forms 1120 or 1120-A, line 19, enter on

result.

line 5a and/or 5b the credit amount claimed on Utah

Schedule A, line 16.

Line 8 – Utah Allowed Contributions Deduction

Enter the lesser of line 3 or line 7 on line 8 and on

The current year contribution on line 4 will be reduced

Schedule A, line 7.

by any amounts entered on lines 5a and 5b.

Page 14

2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions Page 15

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