(a) Expenses that would be deducted from income if the trust were not a unitrust may not be deducted from the unitrust distribution.
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(b) Unless otherwise provided by the governing instrument, a unitrust distribution shall be considered to have been paid from net income as net income would be determined if the trust were not a unitrust. To the extent net income is insufficient, the unitrust distribution shall be considered to have been paid from ordinary income that is allocable under federal income tax rules to net income as determined for a unitrust. To the extent that the ordinary income is insufficient, the unitrust distribution is considered to have been paid from net realized short-term capital gains. To the extent net income, ordinary income, and net realized short-term capital gains are insufficient, the unitrust distribution shall be considered to have been paid from net realized long-term capital gains. To the extent net income, ordinary income, and net realized short-term and long-term capital gains are insufficient, the unitrust distribution shall be paid from the principal of the trust.
