Utah Tax Changes - October 2024
Week Of 10.14.2024
Utah Corporate Income Tax—Utah historic preservation tax credit—residential requirement.
The Utah State Tax Commission determined that the taxpayer's project did not meet the residential requirement under Utah Code Ann. § 59-7-609(2)(c) to qualify for the historic preservation tax credit. The taxpayer is using a portion of the property for offices and a portion for short-term rentals and inquired whether the short-term rental portion of the historic building would be considered "residential." The Tax Commission noted that the short-term rental situation presented is similar to the weekly rental situation described in prior private letter rulings in which historic buildings used for short-term rentals or not for a person's personal residence would not be considered "residential." In addition, the Tax Commission referred to the dictionary definition of "residential," which indicated that the term applies to a private dwelling or home in which a person lives or dwells permanently or for a considerable time. As such, the Tax Commission concluded that the short-term rental portion of the subject building would not be considered residential. (Utah Private Letter Ruling No. 24-001, 06/27/2024, released 10/10/2024.)
Utah Credits and Incentives—Utah historic preservation tax credit—residential requirement.
The Utah State Tax Commission determined that the taxpayer's project did not meet the residential requirement under Utah Code Ann. § 59-7-609(2)(c) to qualify for the historic preservation tax credit. The taxpayer is using a portion of the property for offices and a portion for short-term rentals and inquired whether the short-term rental portion of the historic building would be considered "residential." The Tax Commission noted that the short-term rental situation presented is similar to the weekly rental situation described in prior private letter rulings in which historic buildings used for short-term rentals or not for a person's personal residence would not be considered "residential." In addition, the Tax Commission referred to the dictionary definition of "residential," which indicated that the term applies to a private dwelling or home in which a person lives or dwells permanently or for a considerable time. As such, the Tax Commission concluded that the short-term rental portion of the subject building would not be considered residential. (Utah Private Letter Ruling No. 24-001, 06/27/2024, released 10/10/2024.)