Texas Property Code

§ 116.205 — INCOME TAXES

PR § 116.205Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 116. UNIFORM PRINCIPAL AND INCOME ACT · Art. E. ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST

Statute text

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(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 principal and income; and

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Legislative history

Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 8, eff. September 1, 2011.