58-9-505. Income taxes. - Kansas Statutes

58-9-505

Chapter 58.--PERSONAL AND REAL PROPERTY Part 5.--ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-505.   Income taxes.(a) A tax required to be paid by a trustee based on receiptsallocated toincome must be paid from income.

      (b)   A tax required to be paid by a trustee based on receipts allocated toprincipal must be paid from principal, even if the tax is called an income taxby thetaxing authority.

      (c)   A tax required to be paid by a trustee on the trust's share ofan entity'staxable income must be paid proportionately:

      (1)   From income to the extent that receipts from the entity are allocatedto 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 totalreceipts described in subsections (1) and (2)(A).

      (d)   For purposes of this section, receipts allocated to principal orincome must be reduced by the amount distributed to a beneficiary fromprincipalorincome for which the trust receives a deduction in calculating the tax.

      History:   L. 2000, ch. 61, § 29; July 1.