103 KAR 19:010.
Computation of income; estates and trusts.
RELATES TO: KRS
141.010, 141.030, 141.190, 141.020
AUTHORITY: KRS Chapter 13A
FUNCTION, AND CONFORMITY: This administrative regulation outlines procedure for
computing estate and trust income for Kentucky income tax purposes including
instructions covering both resident and nonresident situations.
General. All provisions of KRS Chapter 141 (and related administrative
regulations) that apply to individuals shall also apply to fiduciaries and
returns filed by fiduciaries, except when such provisions conflict with
provisions dealing specifically with fiduciaries.
Computation of Income. Taxable income of an estate or trust is net income as
defined in KRS 141.010(11) except:
(1) The standard
deduction permitted individuals in KRS 141.080 is not allowed;
estate tax paid on income accrued at the date of death of a decedent is
that have been allowed on the Kentucky inheritance tax return or the Kentucky
individual income tax return cannot be claimed on the fiduciary income tax
deductions (or federal tax) related to nontaxable income are not allowed.
Section 3. Tax
Credits. A trust is allowed a tax credit of two (2) dollars; an estate is
allowed a tax credit of twenty (20) dollars.
Resident Estate or Trust. A resident estate or trust shall report and pay tax
on all taxable income except that portion of net income distributable or distributed
during the taxable year, and that portion of the net income from intangible
personal property attributable to a nonresident beneficiary.
Resident Beneficiary. A resident beneficiary must report and pay tax on his
share of the distributed or distributable income from a resident or nonresident
estate or trust.
Nonresident Estate or Trust and Nonresident Beneficiaries. A nonresident
estate, trust, or beneficiary is subject to tax only on income received from
real or tangible personal property located in Kentucky. (IF-1; 1 Ky.R. 332;