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Utah Code — Title 59 (Revenue and Taxation)

Utah Code § 59-7-108

Distributions by corporations

Official textle.utah.gov

# (1)

# (a)

For purposes of this chapter, a distribution is made out of earnings or profits to the extent of the earnings or profits, and from the most recently accumulated earnings or profits.

# (b)

(i)
Subject to Subsection (1)(b)(ii), any earnings or profits accumulated or increase in value of property accrued before January 1, 1931, may be excluded from taxable income after the earnings and profits accumulated after December 31, 1930 have been distributed.

(ii)
A distribution described in Subsection (1)(b)(i) shall be applied against and reduce the basis of the stock.

# (2)

# (a)

Subject to Subsection (2)(b), if any distribution that is not in partial or complete liquidation is made by a corporation to its shareholders, is not out of increase in value of property accrued before January 1, 1931, and is not out of earnings or profits, the amount of the distribution shall be applied against and reduce the basis of the stock.

# (b)

If a distribution described in Subsection (2)(a) is in excess of the basis of the stock, the excess shall be treated as a gain from the sale or exchange of property.

Last amended: Amended by Chapter 69, 2011 General Session

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In this chapter (40 sections)
  1. 59-7-101 · Definitions
  2. 59-7-102 · Exemptions
  3. 59-7-103 · Chapter applicable to receivers, trustees in bankruptcy and…
  4. 59-7-104 · Tax -- Minimum tax
  5. 59-7-105 · Additions to unadjusted income
  6. 59-7-106 · Subtractions from unadjusted income
  7. 59-7-107 · Basis
  8. 59-7-108 · Distributions by corporations
  9. 59-7-109 · Charitable contributions
  10. 59-7-109.1 · Charitable contributions to the Carson Smith Opportunity…
  11. 59-7-110 · Utah net loss -- Carry forward -- Deduction
  12. 59-7-111 · Safe harbor lease provisions
  13. 59-7-112 · Installment sales
  14. 59-7-113 · Allocation of income and deductions between several…
  15. 59-7-114 · Section 338, Internal Revenue Code -- Elections
  16. 59-7-115 · Section 336(e), Internal Revenue Code -- Elections
  17. 59-7-116 · Taxation of regulated investment companies
  18. 59-7-116.5 · Real estate investment trusts
  19. 59-7-117 · Equitable adjustments
  20. 59-7-118 · Section 965, Internal Revenue Code -- Installment payments
  21. 59-7-159 · Review of credits allowed under this chapter
  22. 59-7-201 · Tax -- Minimum tax
  23. 59-7-203 · Computation of Utah taxable income
  24. 59-7-204 · Income attributed to sources within the state
  25. 59-7-205 · Applicability of Parts 5 and 6 of chapter
  26. 59-7-206 · Offsets against tax
  27. 59-7-207 · Corporations becoming subject to tax -- Assessment under…
  28. 59-7-208 · Provisions followed for purposes of tax collected
  29. 59-7-302 · Definitions -- Determination of taxpayer status
  30. 59-7-303 · Apportionable income
  31. 59-7-305 · When taxable in another state
  32. 59-7-306 · Allocation of certain nonbusiness income
  33. 59-7-307 · Allocation of rents and royalties
  34. 59-7-308 · Allocation of capital gains and losses
  35. 59-7-309 · Allocation of interest and dividends
  36. 59-7-310 · Allocation of patent and copyright royalties
  37. 59-7-311 · Method of apportionment of business income
  38. 59-7-312 · Property factor for apportionment of business income --…
  39. 59-7-313 · Valuation of property for inclusion in property factor
  40. 59-7-314 · Averaging property values for inclusion in property factors
Full table of contents →