Receipts normally apportioned -- Insubstantial allocation not required.

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  • (1) If a fiduciary determines that an allocation between income and principal required by Section 22-3-409, 22-3-410, 22-3-411, 22-3-412, or 22-3-415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless Subsection 22-3-203(5) applies to the allocation.
  • (2) A fiduciary may presume an allocation is insubstantial under Subsection (1) if:
    • (a) the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; and
    • (b) the asset producing the receipt to be allocated has a fair market value less than 10% of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
  • (3) The power to make a determination under Subsection (1) may be:
    • (a) exercised by a co-fiduciary in the manner described in Subsection 22-3-203(6); or
    • (b) released or delegated for a reason described in Subsection 22-3-203(7) and in the manner described in Subsection 22-3-203(8).




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