58.1-370 - Credit to trust beneficiary receiving accumulation distribution. - Virginia Statutes

§ 58.1-370. Credit to trust beneficiary receiving accumulation distribution.

A. A beneficiary of a trust whose Virginia taxable income includes all orpart of an accumulation distribution by such trust, as defined in the laws ofthe United States relating to federal income taxes, shall be allowed a creditagainst the tax otherwise due under this chapter for all or a proportionatepart of any tax paid by the trust under this chapter which would not havebeen payable if the trust had in fact made distributions to its beneficiariesat the times and in the amounts specified in the laws of the United Statesrelating to federal income taxes.

B. The credit under this section shall not reduce the tax otherwise due fromthe beneficiary under this chapter to an amount less than would have been dueif the accumulation distribution or his part thereof were excluded from hisVirginia taxable income.

(Code 1950, § 58-151.026; 1971, Ex. Sess., c. 171; 1984, c. 675.)