Income and principal distinguished

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RS 2144 - Income and principal distinguished

Receipts paid or delivered in return for the use of money or property forming a part of principal are income, unless this Sub-part expressly provides to the contrary.

Receipts paid or delivered as the consideration for the sale or other transfer of property forming a part of principal or as the replacement of property forming a part of principal are principal unless this Sub-part expressly provides to the contrary.

NOTE: §2144 as amended by Acts 2020, No. 17, eff. Jan. 1, 2021.

RS 2144 - Income and principal distinguished

Receipts paid or delivered in return for the use of property forming a part of principal are income, unless this Subpart expressly provides to the contrary.

Receipts paid or delivered in consideration for the sale or other transfer of property forming a part of principal or as the replacement of property forming a part of principal are principal unless this Subpart expressly provides to the contrary.

Acts 2020, No. 17, §1, eff. Jan. 1, 2021.


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