§ 30-3146 — Income taxes

Nebraska § 30-3146

• Jurisdiction: Nebraska
• Ch. 30: Decedents' Estates; Protection of Persons and Property

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) of this section, 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

Source: Laws 2001, LB 56, § 31; Laws 2009, LB80, § 3.