MS HB991

Amends Section 91-17-401 of Mississippi Code to clarify that partial liquidation determinations consider distributions to "all of the owners, collectively" rather than individual owners.

Changes the definition of "total assets" in partial liquidation calculations to mean the amount of cash and aggregate adjusted bases of other property held by the entity.

Modifies subsection (e) to require trustees to reallocate a portion of principal receipts back to income to reimburse trustees or beneficiaries for federal and state income taxes attributable to partial liquidation distributions.

Effective date is July 1, 2025.