§ 64-2-1069

A. A tax required to be paid by a fiduciary that is based on receipts allocated to income must be paid from income.\nB. A tax required to be paid by a fiduciary that is 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. Subject to subsection D and §§ 64.2-1067, 64.2-1068, and 64.2-1070, a tax required to be paid by a fiduciary on a share of an entity's taxable income in an accounting period must be paid from:\n1. Income and principal proportionately to the allocation between income and principal of receipts from the entity in the period; and\n2. Principal, to the extent the tax exceeds the receipts from the entity in the period.\nD. After applying subsections A, B, and C, a fiduciary shall adjust income or principal receipts, to the extent the taxes the fiduciary pays are reduced because of a deduction for a payment made to a beneficiary.\n2022, c. 354.