North Carolina § 37A-5-505 - Income taxes.
Full text of North Carolina North Carolina General Statutes § 37A-5-505 — Income taxes., with citation guidance and answers to common questions.
§ 37A-5-505. Income taxes.
A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income. 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. A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid: From income to the extent that receipts from the entity are only allocated to income; From principal to the extent receipts from the entity are only allocated to principal; Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and From principal to the extent that the tax exceeds the total receipts from the entity. After applying subsections (a) through (c) of this section, 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. History (2003-232, s. 2; 2010-181, s. 4.)
Source: official North Carolina text · Last verified 2026-08-27
Frequently Asked Questions About North Carolina § 37A-5-505
What does North Carolina General Statutes § 37A-5-505 cover?
Section 37A-5-505 ("Income taxes.") is part of the North Carolina General Statutes, the codified statutory law of North Carolina. 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 North Carolina § 37A-5-505?
A common citation format is "North Carolina General Statutes § 37A-5-505" (North Carolina). 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 North Carolina law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the North Carolina official source linked on this page or consult a licensed North Carolina attorney.
How does North Carolina § 37A-5-505 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in North Carolina 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 North Carolina.