469.459. Taxes to be paid from income or principal, when. - Missouri Statutes

Taxes to be paid from income or principal, when.

469.459. 1. A tax required to be paid by a trustee based on receiptsallocated to income shall be paid from income.

2. A tax required to be paid by a trustee based on receipts allocatedto principal shall be paid from principal, even if the tax is called anincome tax by the taxing authority.

3. A tax required to be paid by a trustee on the trust's share of anentity's taxable income shall be paid proportionately:

(1) From income to the extent that receipts from the entity areallocated 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 thetotal receipts described in subdivision (1) of this subsection andparagraph (a) of this subdivision.

4. For purposes of this section, receipts allocated to principal orincome shall be reduced by the amount distributed to a beneficiary fromprincipal or income for which the trust receives a deduction in calculatingthe tax.

(L. 2001 H.B. 241)