Principal receipts

Ark. Code Ann. § 28-77-404 — under — Receipts Not Normally Apportioned.

Ark. Code Ann. § 28-77-404

(1) A fiduciary shall allocate to principal:(1) to the extent not allocated to income under this chapter, an asset received from:(A) an individual during the individual's lifetime;(B) an estate;(C) a trust on termination of an income interest; or(D) a payor under a contract naming the fiduciary as beneficiary;(2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;(3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income;(4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;(5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and(6) other receipts as provided in Part 3.

(1) to the extent not allocated to income under this chapter, an asset received from:(A) an individual during the individual's lifetime;(B) an estate;(C) a trust on termination of an income interest; or(D) a payor under a contract naming the fiduciary as beneficiary;

(A) an individual during the individual's lifetime;

(B) an estate;

(C) a trust on termination of an income interest; or

(D) a payor under a contract naming the fiduciary as beneficiary;

(2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;

(3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income;

(4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;

(5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and

(6) other receipts as provided in Part 3.