Alabama § 40-16-1.1 - Taxation of Trust as Financial Institution.
Full text of Alabama Code of Alabama § 40-16-1.1 — Taxation of Trust as Financial Institution., with citation guidance and answers to common questions.
§ 40-16-1.1. Taxation of Trust as Financial Institution.
(a) For purposes of this section, “trust” shall have the same meaning given to it in Section 40-18-1.
(b) Any trust which would be subject to tax under Chapter 18 but which also is a financial institution shall be taxed as a financial institution under this chapter, applying the applicable provisions of subsections (a), (b), (d), (e), (f), (h), and (i) of Section 40-18-25. Such a trust shall utilize the allocation and apportionment rules found in this chapter.
(c) If a person is treated as the owner of any portion of a trust pursuant to 26 U.S.C. §§ 671-679, relating to grantor trusts, and if such person is a financial institution, the person shall take into account the income, deductions, and credits of such trust as provided in 26 U.S.C. in computing its net income under this chapter. Such person also may deduct the administrative and other expenses of the portion of the trust which it is treated as owning.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-16-1.1
What does Code of Alabama § 40-16-1.1 cover?
Section 40-16-1.1 ("Taxation of Trust as Financial Institution.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-16-1.1?
A common citation format is "Code of Alabama § 40-16-1.1" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-16-1.1 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.