Okla. Stat. tit. 60 § 175.505

Current through Laws 2024, c. 453.

Section 175.505 - Income taxes

A. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.

B. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.

C. A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:

1. From income to the extent that receipts from the entity are allocated only to income;

2. From principal to the extent that receipts from the entity are allocated only to principal;

3. Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and

4. From principal to the extent that the tax exceeds the total receipts from the entity.

D. After applying subsections A through C of this section, the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.

Okla. Stat. tit. 60, § 175.505

Added by Laws 1998 , SB 1291, c. 115, §29, eff. 11/1/1998; Amended by Laws 2009 , SB 981, c. 90, §2, eff. 11/1/2009.