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.
| Distributable net income (DNI) represents which of the following: |
| 1&4 |
| 1.The lower limit of the income distribution deduction that an estate or trust may take. |
| TRUE--To prevent double taxation, trusts & estates are permitted by law, to deduct the lesser of the DNI or the total trust income meant to be distributed to beneficiaries. |
| 2.The minimum amount of income taxed to the beneficiaries. |
| FALSE---this is the maximum amount of distribution that is taxable. Anything above this, is not taxable, as it is considered distribution of principal. |
| 3.The total amount of income distributed to the beneficiaries. |
| FALSE-- The total income is shared between the trust/estate & the beneficiaries. |
| 4.The amount of the estate or trust income available for distribution to the beneficiaries. |
| TRUE--It is an arrangement ,meant for beneficiaries , as a reliable source of income. |
Distributable net income (DNI) represents which of the following: The lower limit of the income distribution...
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
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.
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....
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.
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
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...
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....
Question 1 Which of the following is true concerning Crummey powers. Allows a gift to qualify for the annual exclusion. Typically found within revocable trusts. Is a provision found within an irrevocable life insurance trust. Question 1 options: A - I and II B - II only C - I and III D - III only Question 2 Which of the following is not true with respect to a net gift? A - The gross amount of the gift is...
In 2018, which of the following children would have income taxed at trust and estate rates? a. A 9-year-old child with salary income of $1,000 b. A 12-year-old child with net unearned income of $3,200 c. A 13-year-old child with salary income of $12,000 d. All of the above e. A nonstudent, 19-year-old child with net unearned income of $12,000
In 2019, which of the following children would have income taxed at trust and estate rates? a. A 13-year-old child with salary income of $12,000 b. A nonstudent, 19-year-old child with net unearned income of $12,000 c. A 9-year-old child with salary income of $1,000 d. A 12-year-old child with net unearned income of $3,200 e. All of these choices are correct.