DRS: 12-714(b)-1, Special rule where a trust or estate has no federal distributable net income

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Conn. Agencies Regs. § 12-714(b)-1. Special rule where a trust or estate has no federal distributable net income.

(a) If a trust or estate has no federal distributable net income for a taxable year, the share of each beneficiary (including, solely for the purpose of this allocation, resident beneficiaries) in the items derived from or connected with Connecticut sources which enter into the definition of federal distributable net income shall be in proportion to such beneficiary’s share of the trust or estate income for such year, under local law or the governing instrument, which is required to be distributed currently, and any other amounts which are properly paid or credited or required to be distributed during the taxable year. Any balance of such net amount shall be allocated to the trust or estate.

(b) While this section pertains to Section 12-714(b) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.

(Effective November 18, 1994.)