386.498 Payment of income taxes.

174 words·~1 min read·/ky/chapter-386/386-498

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 proportionately:

(a)From income to the extent that receipts from the entity are allocated to

income; and

(b)From principal to the extent that:

1. Receipts from the entity are allocated to principal; and

2. The trust's share of the entity's taxable income exceeds the total receipts

described in paragraph

(a)of this subsection and paragraph (b)1. of this

subsection.

(4)For purposes of this section, receipts allocated to principal or income shall be

reduced by the amount distributed to a beneficiary from principal or income for

which the trust receives a deduction in calculating the tax.