RSA 564-C:5-505 · Income Taxes

564-C:5-505 Income Taxes. –

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(a)

A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.

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(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.

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(c)

A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid proportionately:

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(1)

from income to the extent that receipts from the entity are allocated to income; and

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(2)

from principal to the extent that:

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(A)

receipts from the entity are allocated to principal; and

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(B)

the trust's share of the entity's taxable income exceeds the total receipts described in subsections (c)(1) and (2)(A).

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(d)

For purposes of this section, receipts allocated to principal or income must be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax. Source. 2006, 320:68, eff. Aug. 19, 2006.

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