New Jersey § 3a:14a-5

§ 3a:14a-5.

A. Except as in this act otherwise provided, the following shall be income: (a) all dividends and corporate distributions payable to an estate not constituted

principal under the provisions of section 4 of this act, including, by way of description,

but not by way of limitation, cash dividends, extraordinary and ordinary, distribution

in the shares of the distributing corporation which under section 4 of this act shall

be income and distributions in securities of a corporation other than the distributing

corporation; (b) all rights to subscribe to securities of a corporation accruing by reason of the

ownership of securities of another corporation whose securities are held in an estate,

and the proceeds of the sale of such rights; (c) amounts paid upon shares of stock of a corporation held in an estate, in the course

of the liquidation of such corporation, where such amounts are in payment of cash

dividends, declared before such liquidation commenced, or are in payment of arrears

of preferred or guaranteed dividends; (d) distributions made from ordinary income by an investment company or investment

trust referred to in section 1 of this act or a trust qualifying and electing to be

taxed as a real estate investment trust under Federal law. All other distributions made by such a company or trust, including distributions

from capital gains, depreciation or depletion, whether in the form of cash or an option

to take new stock or cash or an option to purchase additional shares, shall be principal.