§ 105-160.4. Tax credits for income taxes paid to other states by estates and trusts. - North Carolina Statutes

§ 105‑160.4.  Taxcredits for income taxes paid to other states by estates and trusts.

(a)        If a fiduciary isrequired to pay income tax to this State for an estate or a trust, thefiduciary shall be allowed a credit against the tax imposed by this Part forincome taxes imposed by and paid to another state or country on income derivedfrom sources within that other state or country in accordance with the formulacontained in subsection (b) and the requirements of subsection (c).

(b)        The fraction of thegross income for North Carolina income tax purposes that is derived fromsources within and subject to income tax in another state or country shall beascertained and the North Carolina income tax before credit under this sectionshall be multiplied by that fraction. The credit allowed shall be either theproduct thus calculated or the income tax actually paid the other state orcountry, whichever is smaller.

(c)        Receipts showingthe payment of income taxes to another state or country and a true copy of thereturn upon the basis of which the taxes are assessed shall be filed with theSecretary at or before the time credit is claimed. If credit is claimed onaccount of a deficiency assessment, a true copy of the notice assessing orproposing to assess the deficiency, as well as a receipt showing the payment ofthe deficiency, shall be filed with the Secretary.

(d)        If any taxes paidto another state or country for which a fiduciary has been allowed a creditunder this section are at any time credited or refunded to the fiduciary, a taxequal to that portion of the credit allowed for the taxes so credited orrefunded shall be due and payable from the fiduciary and shall be subject tothe penalties and interest on delinquent payments provided in G.S. 105‑236and G.S. 105‑241.21.

(e)        A residentbeneficiary of an estate or trust who is taxed under the provisions of Part 2of this Article on income from an estate or trust determined to be includablein the resident's gross income is allowed a credit against the tax imposed forincome taxes paid by the fiduciary to another state or country on the income inaccordance with the formula contained in subsection (b) of this section and therequirements of subsection (c) of this section; provided, that if any taxespaid to another state or country for which a beneficiary has been allowedcredit under this section are at any time credited or refunded to thebeneficiary, a tax equal to that portion of the credit allowed for the taxes socredited or refunded shall be due and payable from the beneficiary and shall besubject to the penalties and interest on delinquent payments provided in G.S.105‑236 and G.S. 105‑241.21. (1989, c. 728, s. 1.38; 1998‑98, ss. 69, 71;2007‑491, s. 44(1)b.)