Code of Alabama
Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.
Section 19-3A-505 - Income Taxes.

(a) A tax required to be paid by a fiduciary based on receipts allocated to income shall be paid from income.
(b) A tax required to be paid by a fiduciary based on receipts allocated to principal shall 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 fiduciary on the trust's share of an entity's taxable income shall be paid as follows:
(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), the fiduciary 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.

Structure Code of Alabama