In the absence of contrary provisions in the will or trust instrument, the following types of corporate distributions shall be treated as follows:
1. Commencing with such distributions to shareholders of record on or after July 1, 1969, corporate distributions of shares of the distributing corporation, including distributions in the form of a share split or share dividend, are principal. A right to subscribe to shares or other securities issued by the distributing corporation accruing to shareholders on account of their share ownership and the proceeds of any sale of the right are principal.
2. Distributions made from ordinary income by a regulated investment company or by a trust qualifying and electing to be taxed under federal law as a real estate investment trust are income. All other distributions made by the company or trust, including distributions from capital gains, depreciation, or depletion, whether in the form of cash or an option to take new shares or cash or an option to purchase additional shares, are principal.
[C71, 73, 75, 77, 79, 81, § 633.103]
Referred to in § 633.649
Previous Section 633.102
Next Section 633.104
© 1999 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Mar 18 15:00:31 CST 1999