{"data":{"id":"us-nm/46-3a-505","jurisdiction":"us-nm","citation":"46-3A-505","heading":"Income taxes.","body":"A. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.\nB. 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.\nC. A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:\n(1) from income to the extent that receipts from the entity are allocated only to income;\n(2) from principal to the extent that receipts from the entity are allocated only to principal;\n(3) proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and\n(4) from principal to the extent that the tax exceeds the total receipts from the entity.\nD. After applying Subsections A through C of this section, 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.","path":["Chapter 46 - Fiduciaries and Trusts","ARTICLE 3A Uniform Principal and Income"],"source_url":"https://nmonesource.com/nmos/nmsa-unanno/en/item/18547/index.do","current_through":"2024-04-26","vintage":"","retrieved_at":"2026-09-03T15:02:19Z","sha256":"88dee8d7d3c12def64479175c3439a9f67d1170227f5c472de288947d12f21eb","source_id":"us-nm","stale":false,"prev":"us-nm/46-3a-504","next":"us-nm/46-3a-506"},"notice":"GroundRules: Original legal text. Not legal advice."}