2005 Idaho Code - 68-10-505 — INCOME TAXES

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 10
                       UNIFORM PRINCIPAL AND INCOME ACT
                                   PART 5.
          ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
    68-10-505.  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 proportionately:
    (1)  From income to the extent that receipts from the entity are allocated
    to income; and
    (2)  From principal to the extent that:
         (A)  Receipts from the entity are allocated to principal; and
         (B)  The trust's share of the entity's taxable income exceeds the
         total receipts described in paragraphs (1) and (2)(A) of this
         subsection.
    (d)  For purposes of this section, receipts allocated to principal or
income must be reduced by the amount distributed to a beneficiary from
principal or income for which the trust receives a deduction in calculating
the tax.