distributable net income represents ? A the lower limit of the income distribution deduction that an estate or trust may take B the minimum amount of income taxed to the beneficiaries C the total amount of income distributed to the beneficiaries D the amount of the estate or trust income available for distribution to the beneficiaries
Answer: Option D
The distributable net income represents the amount of estate or trust income available for distributable to the beneficiaries. Such income is that which is available after the deduction of tax expense so that the income is not taxable in the hands of the beneficiary as it is already tax in the hands of the trust or estate. Therefore option D the amount of estate or trust income available for distribution to the beneficiaries is the correct answer.
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distributable net income represents ? A the lower limit of the income distribution deduction that...
Distributable net income (DNI) represents which of the following: The lower limit of the income distribution deduction that an estate or trust may take. The minimum amount of income taxed to the beneficiaries. The total amount of income distributed to the beneficiaries. The amount of the estate or trust income available for distribution to the beneficiaries.
This year, the Nano Trust reported $50,000 of trust accounting income, $75,000 in taxable income before distribution deduction, no tax-exempt income and $60,000 in distributable net income (DNI). Also during this year, Nano actually distributed $30,000 cash to Horatio, its sole income beneficiary. Nano is a simple trust. Nano’s distribution deduction is: a. $60,000. b. $50,000. c. $30,000. d. $40,000. e. $70,000.
the distributive oh net income for the Samson estate is 20000 including 3000 of tax-exempt interest income if they executor distribute $8,000 to the beneficiaries in a year of other than the final year what amount have you taken is the distribution deduction
The Twist Trust has generated $60,000 in depreciation deductions for the year. Its accounting income is $75,000. In computing this amount, pursuant to the trust document, depreciation was allocated to corpus. Accounting income was distributed at the trustee's discretion: $25,000 to Hernandez and $50,000 to Jackson. Compute the depreciation deductions that Hernandez, Jackson, and Twist may claim under the following assumptions. If an amount is zero, enter "0". Do not round any division. Depreciation Deductions Hernandez Jackson Twist Trust a....
Roth IRA tax advantages include which of the following. a. Exemption from required minimum distribution rules,as long as the original account owner is still alive, b. Federal estate tax exemption for Roth IRA balances, c. Federal income tax deduction for Roth IRA contributions, d. Exemption from required minimum distribution rules for all beneficiaries of inherited Roth accounts.
In the current year, the Mixon Family Trust had the following income and expense items: Rental income 104,000, dividends from equity stocks 15,890, tax exempt interest income 23,400, long term capital gains from stocks 43,100 rental operating expenses 33,443 and trustee fees 12,000. Under the trust agreement - all capital gains and 50% of trustee fees are allocated to the principal account. The trustee has to maintain reserve for depreciation equal to tax depreciation deduction for current year of $9,650....
Which of the following is an INCORRECT statement regarding the? testator's signature requirement for making a valid? will? A. Wills need not be signed. B. Courts have held that an? "X" can constitute a valid signature on a will if it can be proven that the testator intended it to be his or her signature. C. Courts have held that the? testator's nickname can constitute a valid signature on a will if it can be proven that the testator intended...
true or false 9. When income is taxable to the grantor trust rules, the attorney who drafted the trust definitely made a mistake. 10. Which of the following is not a tax consequence associated with a defective trust? a. The income tax is shared by the trust and the trust beneficiaries. b. The Grantor is subject to income tax. c. For gift tax purposes, a gift into this trust is complete. d. The trust assets are removed from the Grantor’s...
A resident of California’s IRA distribution is fully taxable if his or her IRA contributions were fully deductible. If his or her IRA contributions were partially or fully nondeductible, then the nondeductible contributions are not taxed when they are distributed. The taxpayer’s basis is the amount of which of the following? A. Nondeductible contributions B. California compensation C. Federal deduction D. Required minimum distributions
A gift of? $100,000 to a named beneficiary is? a(n) _____ testamentary gift. A. residuary B. specific C. residual D. general E. intangible =============================================================== Which of the following are NOT true about a living? trust? A. All the income earned by the trust is attributed to the? grantor, who must pay income taxes on the earnings just as if the trust did not exist. B. It is not subject to property division on divorce. C. It does not reduce estate...