Louisiana § RS 47:181 - Imposition of tax on estates and trusts

§ RS 47:181. Imposition of tax on estates and trusts

            A. Application of tax. The taxes imposed by this Chapter upon individuals shall apply to the income of estates or of any kind of property held in trust including:

            (1) Income accumulated in trust for the benefit of unborn or unascertained person or persons with contingent interests, and incomes accumulated or held for future distribution under the terms of will or trust;

            (2) Income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a tutor of a minor which is to be held or distributed as the court may direct;

            (3) Income received by estates of deceased persons during the period of administration or settlement of the estate; and

            (4) Income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated.

            B. Computation and payment.

            (1) The tax shall be computed upon the net income of the estate or trust, and shall be paid by the fiduciary, except as provided in R.S. 47:186, relating to revocable trusts, and R.S. 47:187 relating to income for benefit of the grantor. For return made by the beneficiary see R.S. 47:162.

            (2) The amount of a net operating loss for any tax year beginning on or after January 1, 1992, may be deducted from net income in any of the fifteen years immediately following the year in which the loss occurred.

            (3) The amount of a net operating loss for any tax year beginning on or after January 1, 2000, may be deducted from net income in any of the twenty years immediately following the year in which the loss occurred.

            C. Exceptions. If a trust is a simple trust as defined under Internal Revenue Code Section 651 or a grantor trust as defined under R.S. 47:187, it shall not have to file a Louisiana income tax return if the following conditions are met:

            (1) Such trust does not have any net taxable income for the taxable period.

            (2) Such trust does not have any nonresident beneficiaries.

            Acts 1985, No. 647, §1; Acts 1992, No. 1083, §1, eff. for all open taxable periods; Acts 2015, No. 103, §1, eff. July 1, 2015.

            NOTE: See Acts 2015, No. 103, §2, re: applicability.