§ 9:2149 — Receipts from interests in juridical persons

§2149. Receipts from interests in juridical persons
A. Except as otherwise provided in this Section, a trustee shall allocate to income
money received on account of an interest in a juridical person.
B. A trustee shall allocate to principal the following distributions received on
account of a trustee's interest in a juridical person:
(1) Property other than money.
(2) Money received in one distribution or a series of related distributions in exchange
for part or all of a trustee's interest in the juridical person.
(3) Money received in total or partial liquidation of the juridical person.
(4) Money received from a regulated investment company or a real estate investment
trust if the money distributed is a capital gain dividend for federal income tax purposes.
C. Money is received in partial liquidation to the extent that the juridical person, at
or near the time of a distribution, indicates that it is a distribution in partial liquidation. A
partial liquidation also occurs if the total amount of money and property received in a
distribution or series of related distributions is greater than twenty percent of the juridical
person's gross assets, as shown by the juridical person's year-end financial statements
immediately preceding the initial receipt.
D. Money is not received in partial liquidation, nor may it be taken into account
under Subsection C of this Section, to the extent that it does not exceed the amount of
income tax that a trustee or beneficiary must pay on taxable income of the juridical person
that distributes the money.
E. Notwithstanding the provisions of this Section, if the receipt is one to which a
more specific provision of this Subpart applies, a trustee may allocate the receipt based upon
the source or character of the receipt and may rely upon a statement made by the juridical
person regarding the source or character of the receipt.

Legislative History

Acts 2020, No. 17, §1, eff. Jan. 1, 2021.