§ 8166. Income taxes.

194 words·~1 min read·/pa/title-20/chapter-81/8166

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

(a)Receipts allocated to income.-- A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.

(b)Receipts allocated to principal.-- 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.

(c)Tax on entity's taxable income.-- A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall 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:

(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).

(d)Reductions in receipts allocated to principal or income.-- 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.

20c8167s