On Mar. 12, MS LEG approved bill re monies in a partial liquidation.
MS LEG approved Bill SB 2451 which aims to amend provisions regarding monies received in a partial liquidation under the Mississippi principal and income act of 2013.
Amends Mississippi code of 1972, cited as MS LEG 91-17-401 (character of receipt).
Document dated Mar. 12, 2025, was received on Apr. 15 due to a fixed feed.
Partial Liquidation
Money is received in a partial liquidation if total amount and property received in a distribution/series distributions by all owners, collectively, is over 20% of total assets.
Total assets is cash and aggregate adjusted bases of other property held by the entity.
If money is received in a partial liquidation, portion of receipt allocated to principal will be reallocated to income by trustee to reimburse trustee/beneficiary for income taxes.
Legislative History
On Jan. 20, 2025, bill introduced in Senate; on Feb. 12, 2025, bill passed in Senate.
On Feb. 13, 2025, bill transmitted to House; on Mar. 5, 2025, bill was passed in House.
On Mar. 6, 2025, bill returned for enrolling; on Mar. 12, 2025, bill signed by governor.
Effectiveness
Act takes effect and be in force from and after Jul. 1, 2025
Regulators
MS LEG
Entity Types
Corp; IA
Reference
Bill SB2451, 3/12/2025; Citation: MS LEG 91-17-401;
