Okla. Stat. tit. 60, § 60-175.401
This is the official text of Okla. Stat. tit. 60, § 60-175.401, part of Oklahoma’s Stat. tit. 60, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 60,." Browse the sections below, each linked to its official government source.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Character of receipts
Official statutory text
CHARACTER OF RECEIPTS
A. In this section, "entity" means a corporation, partnership,
limited liability company, regulated investment company, real estate
investment trust, common trust fund, or any other organization in
which a trustee has an interest other than a trust or estate to
which Section 11 of this act applies, a business or activity to
which Section 12 of this act applies, or an asset-backed security to
which Section 24 of this act applies.
B. Except as otherwise provided in this section, a trustee
shall allocate to income money received from an entity.
C. A trustee shall allocate the following receipts from an
entity to principal:
1. Property other than money;
2. Money received in one distribution or a series of related
distributions in exchange for part or all of a trust's interest in
the entity;
Oklahoma Statutes - Title 60. Property Page 94
3. Money received in total or partial liquidation of the
entity; and
4. Money received from an entity that is a regulated investment
company or a real estate investment trust if the money distributed
is a capital gain dividend for federal income tax purposes.
D. Money is received in partial liquidation:
1. To the extent that the entity, at or near the time of a
distribution, indicates that it is a distribution in partial
liquidation; or
2. If the total amount of money and property received in a
distribution or series of related distributions is greater than
twenty percent (20%) of the entity's gross assets, as shown by the
entity's year-end financial statements immediately preceding the
initial receipt.
E. Money is not received in partial liquidation, nor may it be
taken into account under paragraph 2 of subsection D of this
section, to the extent that it does not exceed the amount of income
tax that a trustee or beneficiary must pay on taxable income of the
entity that distributes the money.
F. A trustee may rely upon a statement made by an entity about
the source or character of a distribution if the statement is made
at or near the time of distribution by the entity's board of
directors or other person or group of persons authorized to exercise
powers to pay money or transfer property comparable to those of a
corporation's board of directors.
A. In this section, "entity" means a corporation, partnership,
limited liability company, regulated investment company, real estate
investment trust, common trust fund, or any other organization in
which a trustee has an interest other than a trust or estate to
which Section 11 of this act applies, a business or activity to
which Section 12 of this act applies, or an asset-backed security to
which Section 24 of this act applies.
B. Except as otherwise provided in this section, a trustee
shall allocate to income money received from an entity.
C. A trustee shall allocate the following receipts from an
entity to principal:
1. Property other than money;
2. Money received in one distribution or a series of related
distributions in exchange for part or all of a trust's interest in
the entity;
Oklahoma Statutes - Title 60. Property Page 94
3. Money received in total or partial liquidation of the
entity; and
4. Money received from an entity that is a regulated investment
company or a real estate investment trust if the money distributed
is a capital gain dividend for federal income tax purposes.
D. Money is received in partial liquidation:
1. To the extent that the entity, at or near the time of a
distribution, indicates that it is a distribution in partial
liquidation; or
2. If the total amount of money and property received in a
distribution or series of related distributions is greater than
twenty percent (20%) of the entity's gross assets, as shown by the
entity's year-end financial statements immediately preceding the
initial receipt.
E. Money is not received in partial liquidation, nor may it be
taken into account under paragraph 2 of subsection D of this
section, to the extent that it does not exceed the amount of income
tax that a trustee or beneficiary must pay on taxable income of the
entity that distributes the money.
F. A trustee may rely upon a statement made by an entity about
the source or character of a distribution if the statement is made
at or near the time of distribution by the entity's board of
directors or other person or group of persons authorized to exercise
powers to pay money or transfer property comparable to those of a
corporation's board of directors.
Status: in_force · Read it on the official government site
Need a lawyer in Oklahoma?
Find a Oklahoma lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.