Ala. Admin. Code r. 810-3-25-.04

Current through Register Vol. 42, No. 12, September 30, 2024

Section 810-3-25-.04 - Estates And Trusts Tax Computation, For Taxable Years Beginning Prior To January 1, 2005

(1) Estates and trusts are taxed at the same rate as a single individual - see § 40-18-5(1), Code of Ala. 1975. Those rates are two percent of the first $500.00 of taxable income, four percent of the taxable income in excess of $500.00 and not in excess of $3,000.00, and five percent of taxable income in excess of $3,000.00.

(2) A resident estate or trust that has gross income taxable in Alabama and another state will be allowed a credit for net income taxes paid the other state on such income as provided in § 40-18-21. See Rule 810-3-21-.01.

(3) The Subchapter J and Business Trust Conformity Act, Act 2006-114, was passed by the Alabama Legislature effective for taxable years beginning after December 31, 2004 -please refer to the regulations promulgated to implement the new act.

Ala. Admin. Code r. 810-3-25-.04

Adopted September 30, 1982. Amended June 17, 1988; filed July 27, 1988. Amended: Filed March 31, 2000; effective May 5, 2000. Amended: Filed December 27, 2006; effective January 31, 2007.

Authors: Ron Bedsole, Ed Cutter, CPA

Statutory Authority:Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-25.