Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 23 - FIDUCIARY INCOME TAX REGULATIONS › Section 316-23-004 - TAXATION OF RESIDENT AND NONRESIDENT ESTATES AND TRUSTS

Current through June 17, 2024
004.01 Resident trusts and estates
The Nebraska income tax is imposed for each taxable year on
				  the adjusted federal taxable income of the fiduciary. The tax is a percentage
				  of the taxpayer's adjusted federal taxable income for the taxable year plus a
				  percentage of the federal alternative minimum tax and the federal tax on
				  premature or lump-sum distributions from qualified retirement
				  plans.
004.02 Nonresident
				trusts and estates
The Nebraska income tax is imposed for each taxable year on
				  the income of every nonresident trust or estate which is derived from sources
				  within Nebraska. The tax is a percentage of the tax owed by a resident estate
				  or trust with the same adjusted federal taxable income. The percentage is
				  determined by dividing Nebraska source income as determined in paragraph 004.04
				  by adjusted federal taxable income after the adjustments provided in paragraph
				  004.03.
004.03 Determining
				adjusted federal taxable income
Adjusted federal taxable income is the amount of federal
				  taxable income of the fiduciary after the adjustments provided in paragraphs
				  004.03A through
				  004.03G.
004.03A
Income from federal
				obligations.
There shall be subtracted any interest and dividends
				received on United States obligations to the extent such interest and dividends
				are included in federal taxable income but exempt from state income taxes under
				the laws of the United States. The amount subtracted on account of such
				interest and dividends must be reduced by any interest on indebtedness incurred
				to carry such obligations and by any expense incurred in the production of such
				income to the extent such expense or interest was deducted in determining
				federal taxable income.
004.03A(1) United
				States obligations which are exempt include the following:
004.03A(1)(a) Series E, F, G, and H savings
				bonds;
004.03A(1)(b) United States
				Treasury bills;
004.03A(1)(c) U.S.
				Government notes;
004.03A(1)(d)
				U.S. Government bonds;
004.03A(1)(e) U.S. Government
				certificates;
004.03A(1)(f)
				Interest on debentures issued to mortgages of mortgagees foreclosed under
				provisions of the National Housing Act if insured after February 3,
				1938;
004.03A(1)(g) Retirement bond
				as provided by I.R.C. § 409;
004.03A(1)(h) Federal Farm Credit Bank
				Consolidated System wide bonds;
004.03A(1)(i) Federal Land Banks and
				Associations;
004.03A(1)(j) Federal
				Intermediate Credit Bank;
004.03A(1)(k) Commodity Credit Corporation;
004.03A(1)(l) Federal Farm
				Mortgage Corporation;
004.03A(1)(m)
				Federal Home Loan Banks;
004.03A(1)(n) Reconstruction Finance
				Corporation;
004.03A(1)(o) General
				Services Administration Participation Certificates;
004.03A(1)(p) Central Bank for Cooperatives
				(interest only);
004.03A(1)(q)
				Federal Reserve Banks;
004.03A(1)(r) Federal Savings and Loan
				Insurance Corporation;
004.03A(1)(s) Production Credit Association
				(interest only);
004.03A(1)(t)
				Tennessee Valley Authority Bonds;
004.03A(1)(u) Postal Service Bonds;
004.03A(1)(v) Federal Deposit Insurance
				Corporation (interest only); and
004.03A(1)(w) Student Loan Marketing
				Association (interest only).