2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 81 - Principal and Income
8166 - Income taxes.

     § 8166.  Income taxes.
        (a)  Receipts allocated to income.--A tax required to be paid
     by a trustee based on receipts allocated to income shall be paid
     from income.
        (b)  Receipts allocated to principal.--A tax required to be
     paid by a trustee based on receipts allocated to principal shall
     be paid from principal even if the tax is called an income tax
     by the taxing authority.
        (c)  Tax on entity's taxable income.--A tax required to be
     paid by a trustee on the trust's share of an entity's taxable
     income shall 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:
                (i)  receipts from the entity are allocated to
            principal; and
                (ii)  the trust's share of the entity's taxable
            income exceeds the total receipts described in paragraph
            (1) and subparagraph (i).
        (d)  Reductions in receipts allocated to principal or
     income.--For purposes of this section, receipts allocated to
     principal or income shall be reduced by the amount distributed
     to a beneficiary from principal or income for which the trust
     receives a deduction in calculating the tax.