Maine Revised Statutes

§7-765. Income taxes

(a).    A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
[ 2001, c. 544, §2 (NEW) .]
(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.
[ 2001, c. 544, §2 (NEW) .]
(c).    A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:
(1). From income to the extent that receipts from the entity are allocated only to income; [2011, c. 256, §2 (AMD); 2011, c. 256, §4 (AFF).]
(2). From principal to the extent that receipts from the entity are allocated only to principal; [2011, c. 256, §2 (AMD); 2011, c. 256, §4 (AFF).]
(3). Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and [2011, c. 256, §2 (NEW); 2011, c. 256, §4 (AFF).]
(4). From principal to the extent that the tax exceeds the total receipts from the entity. [2011, c. 256, §2 (NEW); 2011, c. 256, §4 (AFF).]
[ 2011, c. 256, §2 (AMD); 2011, c. 256, §4 (AFF) .]
(d).   
[ 2011, c. 256, §4 (AFF); 2011, c. 256, §2 (RP) .]
(e).    After applying subsections (a) to (c), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
[ 2011, c. 256, §2 (NEW); 2011, c. 256, §4 (AFF) .]
SECTION HISTORY
2001, c. 544, §2 (NEW). 2011, c. 256, §2 (AMD). 2011, c. 256, §4 (AFF).