§60-175.505. Income taxes.
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/ok/title-60-property/60-175-505·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
INCOME TAXES
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:
1. From income to the extent that receipts from the entity are allocated only to income;
2. From principal to the extent that receipts from the entity are allocated only to principal;
3. Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
4. From principal to the extent that the tax exceeds the total receipts from the entity.
D. After applying subsections A through C 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 payments made to a beneficiary. Added by Laws 1998, c. 115, § 29, eff. Nov. 1, 1998. Amended by Laws 2009, c. 90, § 2, eff. Nov. 1, 2009.