TITLE 53
WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES
ARTICLE 17
GEORGIA PRINCIPAL AND INCOME ACT
53-12-454. Income taxes.
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A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.
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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.
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A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid:
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From income to the extent that receipts from the entity are allocated only to income;
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From principal to the extent that receipts from the entity are allocated only to principal;
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Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
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From principal to the extent that the tax exceeds the total receipts from the entity.
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After applying subsections (a) through (c) of this Code section, the trustee shall adjust income or principal receipts to the extent that its taxes are reduced because it receives a deduction for payments made to a beneficiary.
(Code 1981, §53-12-454, enacted by Ga. L. 2010, p. 579, § 1/SB 131.)