§ 15-1.2-506 — Income taxes

Colorado § 15-1.2-506

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Uniform Fiduciary Income and Principal Act

Text

(1) A tax required to be paid by a fiduciary which
is based on receipts allocated to income must be paid from income.

(2) A tax required to be paid by a fiduciary which is based on receipts
allocated to principal must be paid from principal, even if the tax is called an
income tax by the taxing authority.

(3) Subject to subsection (4) of this section and sections 15-1.2-504, 15-1.2-505, and 15-1.2-507, a tax required to be paid by a fiduciary on a share of an entity's
taxable income in an accounting period must be paid from:

(a) Income and principal proportionately to the allocation between income
and principal of receipts from the entity in the period; and

(b) Principal to the extent the tax exceeds the receipts from the entity in the
period.

(4) After applying subsections (1) through (3) of this section, a fiduciary shall
adjust income or principal receipts, to the extent the taxes the fiduciary pays are
reduced because of a deduction for a payment made to a beneficiary.

Legislative History

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 834, � 1, effective January 1, 2022.