A Session from Track II of the 28th Annual Tax Forum, co-sponsored by the NHBA•CLE program and the NHSCPAs.
Trust Income Tax Nexus
A state’s ability to tax trust income (or income received by a beneficiary from a trust) depends on whether the state can establish a connection to the income or the activity that generated it. The trust income tax nexus rules are complicated and evolving, and vary significantly from state to state. This session will provide an overview of the concept of nexus, the factors used to evaluate whether nexus exists, and various states’ approaches to the concept.