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Full-Text Articles in Law
Capital Gains Distributions Treated As Principal Under The Uniform Principal And Income Act, James H. Seckinger
Capital Gains Distributions Treated As Principal Under The Uniform Principal And Income Act, James H. Seckinger
Journal Articles
In In re Brock, The Supreme Court of Pennsylvania held: a distribution made by a mutual fund or regulated investment company, the source of which distribution is "realized capital gains," is properly allocable to principal under section 5(3) rather than section 5(1) of the Pennsylvania Principal and Income Act of 1947.
A typical mutual fund is an open-end diversified management investment company. Its business is to select, buy, hold, and sell corporate stocks and other securities. The fund's income is twofold. It derives income from interest and dividends on the securities in its portfolio and gains or profits from advantageous …