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 Oklahoma Statutes (Last Updated: September 18, 2014)
 Title 60. PROPERTY

  § 60-175.505. Income taxes.  

Latest version.

  • 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.

Added by Laws 1998, c. 115, § 29, eff. Nov. 1, 1998.  Amended by Laws 2009, c. 90, § 2, eff. Nov. 1, 2009.