Section 64.2-1069 - Income taxesA. A tax required to be paid by a fiduciary that is based on receipts allocated to income must be paid from income.B. 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.C. 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:1. Income and principal proportionately to the allocation between income and principal of receipts from the entity in the period; and2. Principal, to the extent the tax exceeds the receipts from the entity in the period.D. 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.Added by Acts 2022 c. 354,§ 1, eff. 7/1/2022.