South Carolina § 62-7-929 Payment of taxes from income and principal.

South Carolina Statutes

§ 62-7-929 — Payment of taxes from income and principal.

South Carolina·Title 62 SOUTH CAROLINA PROBATE CODE·Ch. ARTICLE 7 - SOUTH CAROLINA TRUST CODE

(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 the taxable income of the entity 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 th

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(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 the taxable income of the entity 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.

South Carolina § 62-7-929 (Payment of taxes from income and principal.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

HISTORY: 2005 Act No. 66, SECTION 1; 2012 Act No. 204, SECTION 2, eff June 7, 2012; 2013 Act No. 100, SECTION 2, eff January 1, 2014. Effect of Amendment The 2012 amendment rewrote subsections (C) and (D).