§ 105.5. Special rules.
(a) Gifts, bequests and the like. A gift or bequest of a specific sum of money or of specific property, which is required to be paid or distributed to a beneficiary by the specific terms of the will or trust instrument and is properly paid or credited to the beneficiary, shall not be deemed to be a distribution of income by the estate or trust to the beneficiary.
(b) Amounts accumulated for charitable purposes. In the case of an estate or trust, any amount of income required by the terms of the governing instrument to be accumulated and added to the principal for ultimate distribution to, or to be held in trust for the use of, any religious, charitable, scientific, literary, or educational organization shall be deemed to have been paid, credited, or required to be distributed to a charitable trust.
(c) Accumulated income distributed by a nonresident estate or trust to a resident beneficiary. Amounts received by a resident beneficiary from a nonresident estate or trust shall be taxable to the beneficiary in the year received to the extent that such income was not subject to tax under this article. The resident beneficiary shall be allowed a credit against the tax otherwise due under this article for his pro rata share of any income tax, wage tax or tax on or measured by gross or net earned or unearned income imposed on the estate or trust with respect to such income by another state. The credit shall not exceed the proportion of the tax otherwise due. Reference should be made to § 111.4 (relating to limitation on credit).
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