Utah Code 75A-5-506. Income taxes
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(1) A tax required to be paid by a fiduciary that is based on receipts allocated to income shall be paid from income.
Terms Used In Utah Code 75A-5-506
- Accounting period: includes a part of a calendar year or another period of 12 calendar months or approximately 12 calendar months that begins when an income interest begins or ends when an income interest ends. See Utah Code 75A-5-102
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes :(8)(a) a trustee, trust director as defined in Section
75-12-102 , personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;(8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and(8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102- Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset to the extent provided in Part 4, Allocation of Receipts. See Utah Code 75A-5-102
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Utah Code 75A-5-102
(2) A tax required to be paid by a fiduciary that is based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority.(3) Subject to Subsection (4) and Sections75A-5-504 ,75A-5-505 , and75A-5-507 , a tax required to be paid by a fiduciary on a share of an entity’s taxable income in an accounting period shall be paid from:(3)(a) income and principal proportionately to the allocation between income and principal of receipts from the entity in the period; and(3)(b) principal, to the extent that the tax exceeds the receipts from the entity in the accounting period.(4) After applying Subsections (1) through (3), a fiduciary shall adjust income or principal receipts, to the extent that the taxes the fiduciary pays are reduced because of a deduction for a payment made to a beneficiary.