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(1) Tax deductible administrative costs as provided by 15-30-2141 and 15-31-117, MCA, are limited to those that are allowable under the Internal Revenue Code and are ordinary and necessary costs directly connected with or pertaining to the management or maintenance of the principal of the fund.

(2) Administrative costs are tax deductible by:

(a) a cash basis taxpayer in the year they are paid; or

(b) an accrual basis taxpayer in the tax year in which the accrual is made.

(3) Contributions to and administrative costs of an independent liability fund shall be reductions of income in arriving at Montana adjusted gross income.

(4) Upon termination of the independent liability fund the trustee shall file with the department a copy of the federal Form 1099. The returns must provide the amount of any distribution, to whom the distribution was made, and the calendar year of the distribution for any distribution made from the principal or income of the fund.


History: 15-30-2620, 15-31-501, MCA; IMP, 15-30-2118, 15-30-2141, 15-31-117, 15-31-118, MCA; NEW, 1987 MAR p. 2390, Eff. 12/25/87; AMD, 2000 MAR p. 3557, Eff. 12/22/00; AMD and TRANS, from ARM 42.2.401, 2008 MAR p. 340, Eff. 2/15/08; AMD, 2010 MAR p. 1088, Eff. 4/30/10; AMD, 2016 MAR p. 2072, Eff. 11/11/16.

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