Gains on Capital Transactions (code 81)

Utah Code §59-10-114(2)(1)

A qualified taxpayer may deduct the long term and short term capital gain on a transaction if:

1. The gain occurs on or after January 1, 2003;
2. At least 70% of the proceeds of the capital gain transaction are used to purchase qualifying stock in a Utah small business corporation within 12 months from when the gain was recognized; and
3. The individual did not have an ownership interest in the Utah small business corporation that issued the qualifying stock.

For purposes of this deduction, a Utah small business corporation is defined as a corporation that has its commercial domicile in Utah and meets the following conditions:

1. The aggregate amount of money and other property received by the corporation for stock as a contribution to capital and as paid-in surplus, does not exceed $1,000,000.
2. During the period of its 5 most recent taxable years ending before the date the gain on such stock was realized, the corporation derived more than 50% of its aggregate gross receipts from sources other than royalties, rents, dividends, interest, annuities and sales or exchanges of stocks or securities.
3. The time period for determining the source of a corporation's aggregate gross receipts shall end on the last day of the taxable year for which the resident or nonresident individual makes a subtraction from federal taxable income.