Title 53, Chapter 12, Section 216
( 53-12-216)
If a trustee uses any part of the principal in the operation of a
business, including an agricultural or farming operation, the net
profits and losses of the business shall be computed in accordance
with recognized methods of accounting for a comparable business.
Net profits from a business are income. If a loss results in any
fiscal or calendar year, the loss falls on principal and shall not
be carried into any other fiscal or calendar year for purposes of
calculating net income. |