North Dakota § 59-04.2-28 (505) Income taxes

North Dakota Statutes

§ 59-04.2-28 — (505) Income taxes

North Dakota § 59-04.2-28

Title 59Trusts, Uses, and Powers

Ch. 59-04.2Uniform Principal and Income Act (1997)

This text of North Dakota § 59-04.2-28 ((505) Income taxes) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 59-04.2-28 (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:

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

b.From principal to the extent that receipts from the entity are allocated only to principal;

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

d.From principal to the extent that the tax exceeds the total receipts from the entity.

4.A

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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:
a. From income to the extent that receipts from the entity are allocated to income;
b. From principal to the extent that receipts from the entity are allocated only to
principal;
c. Proportionately from principal and income to the extent that receipts from the
entity are allocated to both income and principal; and
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 trust's taxes are reduced because the trust receives a
deduction for payments made to a beneficiary.