2013 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 3.3-235 Common trust fund not separate entity for tax purposes -- Circumstances when no gain or loss to be recognized.
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286.3-235 Common trust fund not separate entity for tax purposes -Circumstances when no gain or loss to be recognized.
(1)
(2)
Common trust funds shall not be considered as an entity for income or other
tax purposes, nor shall investment in such fund make taxable any property
which is otherwise exempt therefrom; and for purposes of taxation, the status
of the common trust fund and of each participant therein shall be determined
as though there were no common fund and as though each participant was the
owner of its proportionate share of every asset held in the common fund. The
bank or trust company maintaining said fund shall file a report of said fund with
the property valuation administrator as of the ad valorem tax date and shall file
annually such income tax information as may be required by the Department of
Revenue.
Notwithstanding subsection (1) of this section, if a common trust fund transfers
substantially all of its assets to one (1) or more regulated investment
companies in exchange solely for stock in the company or companies to which
such assets are transferred and such stock is distributed by such common trust
fund to the participants in such common trust fund in a transaction which would
qualify under Section 584(h) of the Internal Revenue Code of 1986, as
amended, for the nonrecognition of gain or loss of such transfer or distribution
by the common trust fund, then no gain or loss shall be recognized for
Kentucky income tax purposes by the common trust fund by reason of such
transfer or distribution or by the participants in such common trust fund by
reason of such exchange.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 675, effective June 20, 2005. -Amended 1998 Ky. Acts ch. 196, sec. 31, effective July 15, 1998. -- Amended
1974 Ky. Acts ch. 308, sec. 48. -- Created 1950 Ky. Acts ch. 191, sec. 1.
Formerly codified as KRS 287.235.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286.
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