Part 7: UNIFORM PRINCIPAL AND INCOME ACT OF 1997 HEADING: PL 2001, C. 544, §2 (NEW)
Subpart 5: ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST HEADING: PL 2001, C. 544, §2 (NEW)
§7-765. Income taxes
(a). A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
[ 2001, c. 544, §2 (NEW) .]
(b). A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
[ 2001, c. 544, §2 (NEW) .]
(c). A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid proportionately:
(1). From income to the extent that receipts from the entity are allocated to income; and [2001, c. 544, §2 (NEW).]
(2). From principal to the extent that:
(i) Receipts from the entity are allocated to principal; and
(ii) The trust's share of the entity's taxable income exceeds the total receipts described in paragraph (1) and subparagraph (i). [2001, c. 544, §2 (NEW).]
[ 2001, c. 544, §2 (NEW) .]
(d). For purposes of this section, receipts allocated to principal or income must be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax.
Part 7: UNIFORM PRINCIPAL AND INCOME ACT OF 1997 HEADING: PL 2001, C. 544, §2 (NEW)
Subpart 5: ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST HEADING: PL 2001, C. 544, §2 (NEW)
§7-765. Income taxes
(a). A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
[ 2001, c. 544, §2 (NEW) .]
(b). A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
[ 2001, c. 544, §2 (NEW) .]
(c). A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid proportionately:
(1). From income to the extent that receipts from the entity are allocated to income; and [2001, c. 544, §2 (NEW).]
(2). From principal to the extent that:
(i) Receipts from the entity are allocated to principal; and
(ii) The trust's share of the entity's taxable income exceeds the total receipts described in paragraph (1) and subparagraph (i). [2001, c. 544, §2 (NEW).]
[ 2001, c. 544, §2 (NEW) .]
(d). For purposes of this section, receipts allocated to principal or income must be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax.
Part 7: UNIFORM PRINCIPAL AND INCOME ACT OF 1997 HEADING: PL 2001, C. 544, §2 (NEW)
Subpart 5: ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST HEADING: PL 2001, C. 544, §2 (NEW)
§7-765. Income taxes
(a). A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
[ 2001, c. 544, §2 (NEW) .]
(b). A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
[ 2001, c. 544, §2 (NEW) .]
(c). A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid proportionately:
(1). From income to the extent that receipts from the entity are allocated to income; and [2001, c. 544, §2 (NEW).]
(2). From principal to the extent that:
(i) Receipts from the entity are allocated to principal; and
(ii) The trust's share of the entity's taxable income exceeds the total receipts described in paragraph (1) and subparagraph (i). [2001, c. 544, §2 (NEW).]
[ 2001, c. 544, §2 (NEW) .]
(d). For purposes of this section, receipts allocated to principal or income must be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax.
