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Utah Code — Title 59 (Revenue and Taxation)

Utah Code § 59-7-115

Section 336(e), Internal Revenue Code -- Elections

Official textle.utah.gov

# (1)

Transactions for which an election has been made for federal purposes under Section 336(e), Internal Revenue Code, shall be treated as provided in this section. An election is not available for state purposes unless an election is made for federal purposes.

# (2)

If an election is made under Section 336(e), Internal Revenue Code, the following shall apply:

# (a)

if the corporation is treated for federal purposes as having disposed of all of its assets and is a member of a unitary group immediately preceding the date of sale, the corporation shall be included in a combined return to the extent of its income through the date of sale, and the gain or loss on the deemed disposal of assets shall be included in the combined income of the unitary group;

# (b)

if the corporation is treated for federal purposes as having disposed of all of its assets and is not a member of a unitary group immediately preceding the date of sale, the corporation shall file a short period return for the period ending on the date of sale and shall include in such return the gain or loss on the deemed disposal of assets in its adjusted income; and

# (c)

any gain or loss which is not recognized for federal purposes on stock sold, exchanged, or distributed by a corporation pursuant to Section 336(e), Internal Revenue Code, may not be included in adjusted income.

# (3)

There is a rebuttable presumption that the gain or loss on the deemed disposition of assets constitutes business income.

# (4)

The new basis of assets of the corporation which is treated as having disposed of its assets shall be the same as determined for federal purposes.

# (5)

The corporation which is treated as having disposed of its assets shall be treated as a new corporation as of the day after the date of sale.

# (6)

The commission may prescribe such rules as necessary to provide for the equitable treatment of any transaction subject to Section 336(e), Internal Revenue Code.
Repealed and Re-

Last amended: enacted by Chapter 169, 1993 General Session

Source: view the official text

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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 →