{"data":{"id":"us-ky/krs-286.3-235","jurisdiction":"us-ky","citation":"KRS 286.3-235","heading":"Common trust fund not separate entity for tax purposes --","body":"Circumstances when no gain or loss to be recognized.\n(1) Common trust funds shall not be considered as an entity for income or other tax\npurposes, nor shall investment in such fund make taxab le any property which is\notherwise exempt therefrom; and for purposes of taxation, the status of the common\ntrust fund and of each participant therein shall be determined as though there were\nno common fund and as though each participant was the owner of i ts proportionate\nshare of every asset held in the common fund. The bank or trust company\nmaintaining said fund shall file a report of said fund with the property valuation\nadministrator as of the ad valorem tax date and shall file annually such income tax\ninformation as may be required by the Department of Revenue.\n(2) Notwithstanding subsection (1) of this section, if a common trust fund transfers\nsubstantially all of its assets to one (1) or more regulated investment companies in\nexchange solely for stock  in the company or companies to which such assets are\ntransferred and such stock is distributed by such common trust fund to the\nparticipants in such common trust fund in a transaction which would qualify under\nSection 584(h) of the Internal Revenue Code o f 1986, as amended, for the\nnonrecognition of gain or loss of such transfer or distribution by the common trust\nfund, then no gain or loss shall be recognized for Kentucky income tax purposes by\nthe common trust fund by reason of such transfer or distribut ion or by the\nparticipants in such common trust fund by reason of such exchange.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14564","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"599636d872dcac77b4e426f495cdaa14010150a17077504bb08706f7ba16a64d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-230","next":"us-ky/krs-286.3-240"},"notice":"GroundRules: Original legal text. Not legal advice."}