Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 81 - Principal and Income
Section 8166 - Income taxes


(a) Receipts allocated to income.--A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.
(b) Receipts allocated to principal.--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.
(c) Tax on entity's taxable income.--A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid proportionately:
(1) from income to the extent that receipts from the entity are allocated to income; and
(2) from principal to the extent that:
(i) receipts from the entity are allocated to principal; and
(ii) the trust's share of the entity's taxable income exceeds the total receipts described in paragraph (1) and subparagraph (i).
(d) Reductions in receipts allocated to principal or income.--For purposes of this section, receipts allocated to principal or income shall be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax.

Structure Pennsylvania Consolidated & Unconsolidated Statutes

Pennsylvania Consolidated & Unconsolidated Statutes

Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES

Chapter 81 - Principal and Income

Extra - Chapter Notes

Section 8101 - Short title of chapter

Section 8102 - Definitions

Section 8103 - Fiduciary duties; general principles

Section 8104 - Trustee's power to adjust

Section 8105 - Power to convert to unitrust

Section 8106 - Judicial control of discretionary powers

Section 8107 - Express trusts

Section 8113 - Charitable trusts

Section 8121 - Determination and distribution of net income

Section 8122 - Distribution to residuary and remainder beneficiaries

Section 8131 - When right to income begins and ends

Section 8132 - Apportionment of receipts and disbursements when decedent dies or income interest begins

Section 8133 - Apportionment when income interest ends

Section 8141 - Character of receipts

Section 8142 - Distribution from trust or estate

Section 8143 - Business and other activities conducted by trustee

Section 8144 - Principal receipts

Section 8145 - Rental property

Section 8146 - Obligation to pay money

Section 8147 - Insurance policies and similar contracts

Section 8148 - Insubstantial allocations not required

Section 8149 - Retirement benefits, individual retirement accounts, deferred compensation, annuities and similar payments

Section 8150 - Liquidating asset

Section 8151 - Minerals, water and other natural resources

Section 8152 - Timber

Section 8153 - Property not productive of income

Section 8154 - Derivatives and options

Section 8155 - Asset-backed securities

Section 8161 - Mandatory disbursements from income

Section 8162 - Mandatory disbursements from principal

Section 8163 - Discretionary allocation of disbursements

Section 8164 - Transfers from income to principal for depreciation

Section 8165 - Transfers from income to reimburse principal

Section 8166 - Income taxes

Section 8167 - Adjustments between principal and income because of taxes

Section 8191 - Uniformity of application and construction