Oklahoma § 60-175.401

§ 60-175.401.

Character of receipts.

CHARACTER OF RECEIPTS

A. In this section, "entity" means a corporation, partnership,

limited liability company, regulated investment company, real estate

investment trust, common trust fund, or any other organization in

which a trustee has an interest other than a trust or estate to

which Section 11 of this act applies, a business or activity to

which Section 12 of this act applies, or an asset-backed security to

which Section 24 of this act applies.

B. Except as otherwise provided in this section, a trustee

shall allocate to income money received from an entity.

C. A trustee shall allocate the following receipts from an

entity to principal:

1. Property other than money;

2. Money received in one distribution or a series of related

distributions in exchange for part or all of a trust's interest in

the entity;

Oklahoma Statutes - Title 60. Property

3. Money received in total or partial liquidation of the

entity; and

4. Money received from an entity that is a regulated investment

company or a real estate investment trust if the money distributed

is a capital gain dividend for federal income tax purposes.

D. Money is received in partial liquidation:

1. To the extent that the entity, at or near the time of a

distribution, indicates that it is a distribution in partial

liquidation; or

2. If the total amount of money and property received in a

distribution or series of related distributions is greater than

twenty percent (20%) of the entity's gross assets, as shown by the

entity's year-end financial statements immediately preceding the

initial receipt.

E. Money is not received in partial liquidation, nor may it be

taken into account under paragraph 2 of subsection D of this

section, to the extent that it does not exceed the amount of income

tax that a trustee or beneficiary must pay on taxable income of the

entity that distributes the money.

F. A trustee may rely upon a statement made by an entity about

the source or character of a distribution if the statement is made

at or near the time of distribution by the entity's board of

directors or other person or group of persons authorized to exercise

powers to pay money or transfer property comparable to those of a

corporation's board of directors.

Added by Laws 1998, c. 115, § 10, eff. Nov. 1, 1998.