Tax treatment of business trust distributions: unit holders taxed in the nature received while the trust faces maximum marginal taxation. Income distributed by a business trust to unit holders is treated in the hands of the unit holder as of the same nature and proportion as when received or accrued by the trust; the trust's total income is taxed at the maximum marginal rate subject to specified capital gains provisions; distributed amounts that correspond to exempt categories are deemed income of the unit holder in the previous year; payors must furnish prescribed statements to unit holders and the designated authority detailing the nature of income paid.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax treatment of business trust distributions: unit holders taxed in the nature received while the trust faces maximum marginal taxation.
Income distributed by a business trust to unit holders is treated in the hands of the unit holder as of the same nature and proportion as when received or accrued by the trust; the trust's total income is taxed at the maximum marginal rate subject to specified capital gains provisions; distributed amounts that correspond to exempt categories are deemed income of the unit holder in the previous year; payors must furnish prescribed statements to unit holders and the designated authority detailing the nature of income paid.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
