§ 39-22-108.5 — Dual resident trusts - income tax calculation

Colorado § 39-22-108.5

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Income Tax

Text

(1) With respect
to a trust that is a resident of another state and becomes a resident of Colorado
after May 25, 2006, and that is subject to income taxes in the other state and in
Colorado by virtue of the trust's dual residence, the executive director shall, in lieu
of the credit granted in section 39-22-108 (1), allow a credit to the Colorado income
tax to be determined in accordance with this section.

(2) The credit amount shall be equal to the Colorado income tax imposed on
the portion of the trust's income that is subject to tax in Colorado and the other
state, multiplied by a percentage equal to the other state's income tax rate for the
income tax year divided by the sum of the income tax rates of Colorado and the
other state for the income tax year.

(3) If the credit amount in subsection (2) of this section is computed using
more than one other state, the percentage used shall equal the combined total of
all the other states' income tax rates for the income tax year divided by the
combined income tax rates of Colorado and the other states for the income tax
year.

(4) For purposes of this section, state income tax rate means the trust's
state income tax liability divided by the trust's taxable income used to compute the
state income tax liability.

(5) The provisions of section 39-22-108 (3), (4), and (5) shall apply to this
section.

Legislative History

Source: L. 2006: Entire section added, p. 1163, � 1, effective May 25.