§ 30-2-14-42 — Tax payments

Indiana § 30-2-14-42

• Jurisdiction: Indiana
• Art. 2: GENERAL PROVISIONS
• Ch. 14: Uniform Principal and Income Act

Text

(a) A tax required to be paid by a trustee
based on receipts allocated to income must be paid from income.
(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.
(c) A tax required to be paid by a trustee on the trust's share of an
entity's taxable income must be paid:
(1) from income to the extent that receipts from the entity are
allocated to income;
(2) from principal to the extent that receipts from the entity are
allocated only to principal;
(3) proportionately from principal and income to the extent that
receipts from the entity are allocated to both income and
principal; and
(4) from principal to the extent that the tax exceeds the total
receipts from the entity.
(d) After applying subsections (a) through (c), the trustee shall
adjust income or principal receipts to the extent that the trust's taxes are
reduced because the trust receives a deduction for payments made to
a beneficiary.

Legislative History

As added by P.L.84-2002, SEC.2. Amended by P.L.143-2009, SEC.20.