55-13-8 Business and farming operations.
Business and farming operations.
If a trustee uses any part of the
principal in the continuance of a
business of which the settlor was a
sole proprietor or a partner, the net
profits of the business, computed in
accordance with generally accepted
accounting principles for a comparable
business, are income. If a loss results
in any fiscal or calendar year, the loss
falls on principal and shall not be
carried into any other fiscal or
calendar year for purposes of
calculating net income.
Generally accepted accounting principles shall be used to determine income from an
agricultural or farming operation, including the raising of animals or the operation of a
SL 1984, ch 323, § 8.