EPTL 11-A-5.5 — Legislation

Legislation Search OpenLegislation Statutes Search Term Search icon Search previous SECTION 11-A-5.4 Transfers from income to reimburse principal up PART 5 Allocation of Disbursements During Administration of Trust next SECTION 11-A-5.6 Adjustments between principal and income because of taxes Viewing most recent revision (from 2014-09-22) View historical revision as of: -- Choose a Date -- 2014-09-22 Share Facebook Email SECTION 11-A-5.5 Income taxes Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 11-A, PART 5 § 11-A-5.5 Income taxes (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 proportionately: (1) from income to the extent that receipts from the entity are allocated to income; and (2) from principal to the extent that: (A) receipts from the entity are allocated to principal; and (B) the trust's share of the entity's taxable income exceeds the total receipts described in subparagraph (1) and clause (A). (d) For purposes of this section, receipt allocated to principal or income must be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax.