Utah taxes capital gains as ordinary income at 4.65% flat. A founder who started a company with minimal investment and sells for $8M recognizes nearly all proceeds as taxable gain. Installment sales allow Utah sellers to spread gain across multiple tax years, potentially keeping each year below a bracket threshold.
Qualified Opportunity Zone reinvestment defers federal gain but does not defer UT state tax unless the state has adopted a conforming QOZ provision. Consult a tax attorney before finalizing deal structure.