---
urn: urn:us-la:rs:9:2149
citation: "R.S. 9:2149"
status: active
breadcrumb: "Title 9 › Code Preliminary Title › Code Book III › Code Title II › Chapter 1 › Part V › Subpart D"
acts_citations:
  - { year: 2020, number: 17, section: 1, effective_date: 2021-01-01, role: enactment }
---

# Receipts from interests in juridical persons

A. Except as otherwise provided in this Section, a trustee shall allocate to income money received on account of an interest in a juridical person.

B. A trustee shall allocate to principal the following distributions received on account of a trustee's interest in a juridical person:

(1) Property other than money.

(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trustee's interest in the juridical person.

(3) Money received in total or partial liquidation of the juridical person.

(4) Money received from a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.

C. Money is received in partial liquidation to the extent that the juridical person, at or near the time of a distribution, indicates that it is a distribution in partial liquidation. A partial liquidation also occurs if the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent of the juridical person's gross assets, as shown by the juridical person's year-end financial statements immediately preceding the initial receipt.

D. Money is not received in partial liquidation, nor may it be taken into account under Subsection C of this Section, to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the juridical person that distributes the money.

E. Notwithstanding the provisions of this Section, if the receipt is one to which a more specific provision of this Subpart applies, a trustee may allocate the receipt based upon the source or character of the receipt and may rely upon a statement made by the juridical person regarding the source or character of the receipt.