(505) Income taxes
N.D. Cent. Code § 59-04.2-28
in effect59-04.2-28. (505) Income taxes
1. A tax required to be paid by a trustee based on receipts allocated to income must be
paid from income.
2. 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.
3. A tax required to be paid by a trustee on the trust's share of an entity's taxable income
must be paid:
a. From income to the extent that receipts from the entity are allocated to income;
b. From principal to the extent that receipts from the entity are allocated only to
principal;
c. Proportionately from principal and income to the extent that receipts from the
entity are allocated to both income and principal; and
d. From principal to the extent that the tax exceeds the total receipts from the entity.
4. After applying subsections 1 through 3, 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c04-2.pdf#nameddest=59-04p2-28Fetched: 10/16/2026