Oklahoma § 60-175.505

§ 60-175.505.

Income taxes.

INCOME TAXES

A. A tax required to be paid by a trustee based on receipts

allocated to income must be paid from income.

B. A tax required to be paid by a trustee based on receipts

allocated to principal must be paid from principal, even if the tax

is called an income tax by the taxing authority.

C. A tax required to be paid by a trustee on the trust's share

of an entity's taxable income must be paid:

1. From income to the extent that receipts from the entity are

allocated only to income;

2. From principal to the extent that receipts from the entity

are allocated only to principal;

3. Proportionately from principal and income to the extent that

receipts from the entity are allocated to both income and principal;

and

4. From principal to the extent that the tax exceeds the total

receipts from the entity.

D. 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.

Added by Laws 1998, c. 115, § 29, eff. Nov. 1, 1998. Amended by

Laws 2009, c. 90, § 2, eff. Nov. 1, 2009.