75A-5-408. Receipts normally apportioned -- Insubstantial allocation not required.
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Effective 9/1/2024
75A-5-408. Receipts normally apportioned -- Insubstantial allocation not required.
(1)If a fiduciary determines that an allocation between income and principal required by Section 75A-5-409 , 75A-5-410 , 75A-5-411 , 75A-5-412 , or 75A-5-415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless Subsection 75A-5-203
(5)applies to the allocation.
(2)A fiduciary may presume an allocation is insubstantial under Subsection
(1)if:
(a)the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; and
(b)the asset producing the receipt to be allocated has a fair market value less than 10% of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
(3)The power to make a determination under Subsection
(1)may be:
(a)exercised by a co-fiduciary in the manner described in Subsection 75A-5-203 (6); or
(b)released or delegated for a reason described in Subsection 75A-5-203
(7)and in the manner described in Subsection 75A-5-203 (8).
Renumbered and Amended by Chapter 364 , 2024 General Session