Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-7 - INCOME TAX DIVISION › Subject 560-7-3 - SUBSTANTIVE REGULATIONS › Rule 560-7-3-.07 - Fiduciaries

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
The purpose of this Rule is to provide guidance concerning the taxation
				of fiduciaries as required under O.C.G.A. §
									48-7-22.
(2)
Definitions.
The term
				"fiduciary" shall mean the same as defined in O.C.G.A. §
									48-1-2.
(3) General Provisions.
(a) The provisions of this Rule (relating to
				estates and trusts, fiduciaries, and beneficiaries) contemplate that the corpus
				of a trust, or the income therefrom is no longer to be regarded as that of the
				grantor. If, by virtue of the nature and purpose of the trust, the corpus or
				income therefrom remains attributable to the grantor, these provisions do not
				apply.
(b) In general, the income
				of an estate or trust for the taxable year which is currently distributed
				and/or distributable to the respective beneficiaries must be returned by and
				will be taxed to the beneficiaries, but the income of a trust which is to be
				accumulated or held for future distribution, whether consisting of ordinary
				income or gain from the sale of assets included in the corpus of the trusts,
				must be returned by and will be taxed to the fiduciary. However, regardless of
				whether or not the income is taxable to the fiduciary or to the distributee,
				the fiduciary is primarily responsible for reporting all income, allocation of
				the tax being affected by permitting the fiduciary, under certain
				circumstances, to show as a deduction the amounts credited or paid to the
				distributee.
(c) From the gross
				income of an estate or trust there are also deductible (in addition to the
				deductions allowed individuals) the following:
1. Any income of the estate or trust for its
				taxable year which is distributable currently by the fiduciary to a legatee,
				heir or beneficiary, whether or not such income is actually
				distributed.
2. Any income of the
				estate of a deceased person for its taxable year which is properly paid or
				credited during such year to a legatee or heir, and any income either of such
				an estate or a trust for its taxable year, which is similarly paid or credited
				during that year to a legatee, heir or beneficiary if there was vested in the
				fiduciary a discretion either to distribute or to accumulate such
				income.
3. Any amount described in
				subparagraph (3)(c)1. and subparagraph (3)(c)2. as being deductible from the
				gross income of the estate or trust shall be included in computing the net
				income of the legatees, heirs, or beneficiaries, whether distributed to them or
				not. In general there shall be taxed to the fiduciary:
(i) Income accumulated in trust for the
				benefit of unborn or unascertained persons or persons with contingent interests
				and income accumulated or held for future distribution under the terms of the
				will or trust;
(ii) That part of
				the net income of estates or trusts which has not been distributed or become
				distributable to the beneficiaries during the taxable year;
(iii) Income received by estates of deceased
				persons during the period of administration or settlement of estates;
				and
(iv) Income which, in the
				discretion of the fiduciary, may be either distributed to the beneficiaries or
				accumulated, to the extent not distributed during the taxable year. A net loss
				within a tax year substained by an estate or trust is a loss to the corpus of
				the estate or trust, and is not claimable as a deduction by a beneficiary of
				the estate or trust, unless otherwise provided for in the governing
				indenture.
(d) A deduction, in lieu of a personal
				exemption, shall be allowed to fiduciaries in accordance with O.C.G.A. §
										48-7-26.
(e) The net income of deceased individuals
				who, at the time of death, were residents and who died during the taxable year
				or subsequent thereto without having made a return shall be taxed at the rates
				and in the same manner as living persons. A return for any year or period for
				which no return has been filed by the decedent prior to his death shall be made
				and filed by the executor or administrator of the estate of such decedent or
				the person or persons having charge of the properties of such decedent. See
				Rule
				 560-7-7-.08  as to the determination
				of the net income for the final return of a taxpayer who dies during a taxable
				year.
(f) A guardian, whether of an
				infant or other person, is a fiduciary, and as such is required to make and
				file the Form 500 Return for his ward and pay the tax.