N.D. Cent. Code § 59-16.3-07

Current through 2024 Legislative Session

Section 59-16.3-07 - Unitrust amount as net income

Following the conversion of an income trust to a total return unitrust, the trustee:

1. Shall treat the unitrust amount as net income of the trust for purposes of determining the amount available, from time to time, for distributions from the trust;

2. May allocate to trust income for each taxable year of the trust:

a. Net short-term capital gain described in section 1222(5) of the Internal Revenue Code for that year, but only to the extent the amounts so allocated together with all other amounts allocate to trust income for that year does not exceed the unitrust amount for that year; and

b. Net long-term capital gain described in section 1222(7) of the Internal Revenue Code for that year, but only to the extent the amount so allocated together with all other amounts, including amounts described in subdivision a, allocated to trust income for that year does not exceed the unitrust amount for that year.

N.D.C.C. § 59-16.3-07

Added by S.L. 2017 , ch. 416( HB 1228 ), § 10, eff. 8/1/2017.