75A-5-410. Receipts normally apportioned -- Liquidating asset.
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Effective 9/1/2024
75A-5-410. Receipts normally apportioned -- Liquidating asset.
(1)As used in this section:
(a)"Liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time.
(b)"Liquidating asset" includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance.
(2)This section does not apply to a receipt subject to Section 75A-5-401 , 75A-5-409 , 75A-5-411 , 75A-5-412 , 75A-5-414 , 75A-5-415 , 75A-5-416 , or 75A-5-503 .
(3)A fiduciary shall allocate:
(a)to income:
(i)a receipt produced by a liquidating asset, to the extent the receipt does not exceed 3% of the value of the asset; or
(ii)if the fiduciary cannot determine the value of the asset, 10% of the receipt; and
(b)to principal, the balance of the receipt.
Renumbered and Amended by Chapter 364 , 2024 General Session