Tax payments
Sec. 42. (a) A tax required to be paid by a trustee based on
receipts allocated to income must be paid from income.
(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.
(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
(2) from principal to the extent that:
(A) receipts from the entity are allocated to principal; and
(B) the trust's share of the entity's taxable income exceeds
the total receipts described in subdivision (1) and clause (A).
(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.
As added by P.L.84-2002, SEC.2.
Last modified: May 27, 2006