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 only 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.
Credits
Laws 1998, c. 115, § 29, eff. Nov. 1, 1998; Laws 2009, c. 90, § 2, eff. Nov. 1, 2009.
<Caption added by Laws 1998, c. 115>
60 Okl. St. Ann. § 175.505, OK ST T. 60 § 175.505
Current with emergency effective legislation through Chapter 295 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
