Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-3-29 - FIDUCIARY RETURNS
Section 810-3-29-.07 - Fiduciary Income Tax
Universal Citation: AL Admin Code R 810-3-29-.07
Current through Register Vol. 42, No. 11, August 30, 2024
(1) For purposes of the taxes imposed upon the income of estates and trusts and paid by the fiduciary thereof, estates and trusts are classified as either resident or nonresident.
(2) Resident Estate or Trust
(a) "Resident estate" means the estate
of an Alabama resident decedent.
(b) A "resident trust" means any trust
created:
(1) by the will of an Alabama
resident decedent or
(2) by a
person who was an Alabama resident at the time such trust became irrevocable
and that has a fiduciary or beneficiary that either resides in or is domiciled
in Alabama for more than seven (7) months during the respective taxable
year.
(c) The fiduciary
of a trust is domiciled in Alabama if the individual, or group of individuals,
who carry out the fiduciary responsibilities of the trust are located in
Alabama. If the trustee is a corporate fiduciary engaged in interstate trust
administration, the fiduciary is treated as being domiciled in Alabama if the
trustee conducts the major part of its administration of the trust in
Alabama.
(d) The fiduciary of a
resident estate or trust must file a return:
(1) if the estate or trust has net income
over $1,500 for the taxable year or
(2) if the estate or trust is claiming a
qualifying net operating loss for the year.
(e) Resident estates and trusts must report
all income from all sources and are allowed a credit for taxes paid to other
states.
(3) Nonresident Estate or Trust
(a) "Nonresident estate or
trust" means any estate or trust that does not meet the criteria of a resident
estate or trust.
(b) The fiduciary
of a nonresident estate or trust must file a return if the estate or trust
generates income from Alabama sources.
(c) Nonresident estates or trusts must report
Alabama source income in accordance with Section
40-18-14,
Code of Ala. 1975.
Author: Dennice Hillard, CGFM, CPA
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-29.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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