Iowa § 637.505 Income taxes

Iowa Statutes

§ 637.505 — Income taxes

Iowa § 637.505

Title XVJUDICIAL BRANCH AND JUDICIAL PROCEDURES

Ch. 637UNIFORM PRINCIPAL AND INCOME ACT

This text of Iowa § 637.505 (Income taxes) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 637.505 (2026).

Text

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

2.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.

3.A tax required to be paid by a trustee on the trust’s share of an entity’s taxable income must be paid according to all of the following principles:

a.From income, to the extent that receipts from the entity are allocated only to income.

b.Fromprincipal,totheextentthatreceiptsfromtheentityareallocatedonlytoprincipal.

c.Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal.

d.From principal to the extent that the tax exceeds the tot

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1. A tax required to be paid by a trustee based on receipts allocated to income must be
paid from income.
2. 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.
3. A tax required to be paid by a trustee on the trust’s share of an entity’s taxable income
must be paid according to all of the following principles:
a. From income, to the extent that receipts from the entity are allocated only to income.
b. Fromprincipal,totheextentthatreceiptsfromtheentityareallocatedonlytoprincipal.
c. Proportionately from principal and income to the extent that receipts from the entity
are allocated to both income and principal.
d. From principal to the extent that the tax exceeds the total receipts from the entity.

4. After applying subsections 1 through 3, the trustee shall adjust income or principal
receipts to the extent that the taxes of the trust are reduced because the trust receives a
deduction for payments made to a beneficiary.