A trustee shall allocate to:

1. (1) income an amount received as a distribution of income; and

2. (2) principal an amount received as a distribution of principal;

   from a trust or an estate in which the trust has an interest other than a purchased interest. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 23 or 37 of this chapter applies to a receipt from the trust.

As added by P.L.84-2002, SEC.2.