Florida Statutes 738.506 – Income taxes
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(1) A tax required to be paid by a fiduciary which is based on receipts allocated to income must be paid from income.
(2) A tax required to be paid by a fiduciary which is based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
(3) Subject to subsection (4) and ss. 738.504, 738.505, and 738.507, a tax required to be paid by a fiduciary on a share of an entity’s taxable income in an accounting period must be paid from:
(a) Income and principal proportionately to the allocation between income and principal of receipts from the entity in the period.
Terms Used In Florida Statutes 738.506
- Accounting period: means a calendar year unless a fiduciary selects another period of 12 calendar months or approximately 12 calendar months. See Florida Statutes 738.102
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes a trustee, a trust director as defined in…. See Florida Statutes 738.102
- Income: means money or other property a fiduciary receives as current return from principal. See Florida Statutes 738.102
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Florida Statutes 738.102
(b) Principal to the extent that the tax exceeds the receipts from the entity in the period.
(4) After applying subsections (1)-(3), a fiduciary shall adjust income or principal receipts, to the extent the taxes that the fiduciary pays are reduced because of a deduction for a payment made to a beneficiary.