2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions (Page 17 of 19) in pdf

Line 15 – Total Non-Utah Nonbusiness Income

end-of-year value of the corporation’s total assets in

column B. All assets, including Utah assets, should be

Add lines 14a through 14d.

included in column B.

Lines 16a-16d – Direct Related Expenses

Line 21 – Sum of Beginning- and End-of-Year

Describe and enter amounts of direct expenses on the

Asset Values

same letter line as the corresponding nonbusiness

income listed on lines 14a through 14d. Direct related

Add lines 19 and 20 for each respective column.

expenses include wages, interest, depreciation, etc.

Line 22 – Average Asset Values

(Reference: UCA §59-7-101(19))

Line 21 divided by 2 for each column.

Line 17 – Total Direct Related Expenses

Line 23 – Non-Utah Nonbusiness Asset Ratio

Enter the sum of direct related expenses by adding

Line 22, column A divided by line 22, column B.

lines 16a through 16d.

Line 24 – Interest Expense

Line 18 – Non-Utah Nonbusiness Income Net of

Enter the total amount of interest deducted in comput-

Direct Related Expenses

ing Utah taxable income.

Subtract line 17 from line 15.

Line 25 – Indirect Related Expenses for

Line 19 – Beginning-of-Year Assets

Non-Utah Nonbusiness Income

Enter the beginning-of-year value of assets used to

produce non-Utah nonbusiness income in column A.

Multiply line 23 by line 24.

Enter the beginning-of-year value of the corporation’s

Line 26 – Total Non-Utah Nonbusiness Income

total assets in column B. All assets, including Utah

Net of Expenses

assets, should be included in column B.

Subtract line 25 from line 18. Enter amount here and on

Line 20 – End-of-Year Assets

Schedule A, line 5b.

Enter the end-of-year value of assets used to produce

non-Utah nonbusiness income in column A. Enter the

Instructions for Schedule J –

Apportionment Schedule

Property owned by the corporation is valued at its

Determine apportionment fraction by completing this

original cost. Property rented by the corporation is

schedule. The factors express a percent for tangible

valued at eight times the net annual rental rate. Net

property in Utah, for wages and salaries in Utah, and for

annual rental rate is the annual rental rate paid by the

sales in Utah. These factors are added together and

corporation less the annual rate received by the corpo-

divided by the number of factors present (typically 3) to

ration from subrentals.

arrive at the Utah apportionment fraction calculated to

six decimals. This fraction is to be applied to the

The average value of property must be determined by

apportionable income (or loss) to arrive at the amount

averaging the cost values at the beginning and end of

of income (or loss) apportioned to Utah. In cases where

the tax period. However, monthly values may be used

one or more of the factors is omitted due to peculiar

or required if monthly averaging more clearly reflects

aspects of the business operations, divide by the num-

the average value of the corporation’s property.

ber of factors present.

A supporting schedule should be attached whenever

Income or loss from partnership or joint venture inter-

monthly averaging is used.

ests must be included in income and apportioned to

Utah through application of the three-factor formula

Line 2 – Total Tangible Property

consisting of property, payroll and sales.

Enter totals of lines 1(a) through 1(e) in the respective

columns.

For apportionment purposes, the portion of partnership

or joint venture property, payroll and sales to be in-

Line 2(a) – Property Fraction

cluded in the corporation’s property, payroll and sales

Determine property fraction: line 2, column A divided by

factors must be computed on the basis of the

line 2, column B.

corporation’s ownership interest in the partnership or

joint venture.

Line 3 – Wages, Salaries, Commissions, and

Briefly describe the nature and location(s) of your Utah

Other Includable Compensation

business activities in the space provided at the top of

Wages, salaries, commissions and other includable

this schedule.

compensation paid to employees for personal services

must be included in the Utah factor to the extent the

Lines 1(a) - 1(e) – Tangible Property

services, for which the compensation was paid, were

Show the average cost value during the taxable year of

rendered in Utah.

real and tangible personal property used in the busi-

Compensation is paid in the state if:

ness within the state (including leased property) in

column A and overall (including Utah) in column B.

1. The individual’s service is performed entirely within

the state;

Page 16

2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions Page 17

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