Section 46-3A-505 - Income taxesA. 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. Laws 2001, ch. 113, § 505; 2011, ch. 124, § 88.Amended by 2011, c. 124,s. 88, eff. 1/1/2012.