Section 469.459

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

Chapter 469

Effective - 28 Aug 2011, 2 histories   

  469.459.  Taxes to be paid from income or principal, when. — 1.  A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.

  2.  A tax required to be paid by a trustee based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority.

  3.  A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid:

  (1)  From income to the extent that receipts from the entity are allocated to income; and

  (2)  From principal to the extent that receipts from the entity are allocated only to principal.

  4.  After applying subsections 1 to 3 of this section, the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payment made to a beneficiary.

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(L. 2001 H.B. 241, A.L. 2011 S.B. 59)