Arizona Revised Statutes Title 14. Trusts, Estates and Protective Proceedings § 14-7410. Character of receipts;  definition

A. Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.

B. A trustee shall allocate the following receipts from an entity to principal:

C. Money is received in partial liquidation either:

D. Money is not received in partial liquidation, nor may it be taken into account under subsection C, paragraph 2 of this section to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.

E. A trustee may rely on a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or another person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.

F. For the purposes of this section, “entity” means any corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund or other organization in which a trustee has an interest, other than a trust or estate to which § 14-7411 applies, a business or activity to which § 14-7412 applies or an asset-backed security to which § 14-7424 applies.