CODE OF VIRGINIA

CREDIT TO TRUST BENEFICIARY RECEIVING ACCUMULATION DISTRIBUTION (§ 58.1-370)

A. A beneficiary of a trust whose Virginia taxable income includes all or part
of an accumulation distribution by such trust, as defined in the laws of the
United States relating to federal income taxes, shall be allowed a credit
against the tax otherwise due under this chapter for all or a proportionate part
of any tax paid by the trust under this chapter which would not have been
payable if the trust had in fact made distributions to its beneficiaries at the
times and in the amounts specified in the laws of the United States relating to
federal income taxes.

B. The credit under this section shall not reduce the tax otherwise due from the
beneficiary under this chapter to an amount less than would have been due if the
accumulation distribution or his part thereof were excluded from his Virginia
taxable income.

HISTORY: Code 1950, § 58-151.026; 1971, Ex. Sess., c. 171; 1984, c. 675.