Utah Code § 59-10-1404

Character of an item of income, gain, loss, deduction, or credit
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Regardless of whether or how an item of income, gain, loss, deduction, or credit is
characterized for federal income tax purposes, that item of income, gain, loss, deduction, or credit
is from the same source and incurred in the same manner for a pass-through entity taxpayer as if
the item of income, gain, loss, deduction, or credit is:
(1) realized directly from the source from which the item of income, gain, loss, deduction, or credit
is realized by the pass-through entity; or
(2) incurred in the same manner as incurred by the pass-through entity.

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