R865. Tax Commission, Auditing.
R865-9I. Income Tax.
R865-9I-7. Change of Status As Resident or Nonresident Pursuant to Utah Code Ann. Section 59‑10‑120.
A. Definitions.
1. "Part‑year resident" means
an individual that changes status during the taxable year from resident to
nonresident or from nonresident to resident.
2. "FAGI" means federal adjusted
gross income, as defined by Section 62, Internal Revenue Code.
B. The state taxable income of a part‑year resident shall be a percentage of the amount that would have been state taxable income if the taxpayer had been a full‑year resident as determined under Section 59‑10‑112 . This percentage is the Utah portion of FAGI divided by the total FAGI, not to exceed 100 percent.
C. The Utah portion of a part‑year
resident's FAGI shall be determined as follows:
1. Income from wages, salaries, tips and other compensation earned while in a resident status and included in the total FAGI shall be included in the Utah portion of the FAGI.
2. Dividends actually or constructively
received while in resident status shall be included in the Utah portion of
FAGI. Any dividend exclusion shall be
deducted from the Utah portion of FAGI using the percentage of excludable dividends
received while in resident status, compared to the total excludable dividends.
3. All interest actually or constructively
received while in resident status shall be included in the Utah portion of the
FAGI.
4. All FAGI derived from Utah sources while in
a nonresident status, as determined under Section 59-10-117, shall be included
in the Utah portion of FAGI.
D. Income or loss from businesses, rents,
royalties, partnerships, estates or trusts, small business corporations as
defined by Internal Revenue Code Section 1371(b), and farming shall be included
in the Utah portion of FAGI:
1. if the activities involved were concluded, or the taxpayer's connection with them terminated before or at the time of change from resident to nonresident status; or
2. if the activities were commenced or the
taxpayer joined them at the time or after the change from nonresident to
resident status.
Otherwise,
such income or loss shall be included in the Utah portion of FAGI only to the
extent derived from Utah sources as determined under Section 59-10-117.
E. Moving expenses deducted on the federal
return may be deducted from the Utah portion of FAGI only to the extent that
they are for moving into Utah and within Utah.
F. Employee business expenses may be deducted
from the Utah portion of FAGI only to the extent that they pertain to the
production of income included in the Utah portion of FAGI.
G. Payments by a self‑employed person to
a retirement plan that reduce the total FAGI may be deducted from the Utah
portion of FAGI in the same proportion that the related self‑ employment
income is included in the Utah portion of FAGI.
H. Other income, losses or
adjustments applicable in determining total FAGI may be allowed or included in
the Utah portion of his FAGI only when the allowance or inclusion is fair,
equitable, and would be consistent with other requirements of the act or these
rules as determined by the Tax Commission.
59-7-03
Effective: 5/17/2002