Homework SourseThe DNI for the Sampson estate is 20000 including 3000 Id as
The DNI for the Sampson estate is 20000 including 3000 I’d ask tax exempt int income If the executor distributes 8000 to the beneficiaries in a year other than the final year what amount may be taken as a distribution deduction
The DNI for the Sampson estate is 20000 including 3000 I’d ask tax exempt int income If the executor distributes 8000 to the beneficiaries in a year other than the final year what amount may be taken as a distribution deduction
Solution
In the given question it is given as the distributable net income of the estate is $20,000 and it includes exempted interest income after adjusting with tax of $3,000. It paid to the beneficiaries $8,000, the distributive deduction in the question is the amount paid to the beneficiaries in proportion to the taxable income of the trust.
Taxable income would be $17,000 and exempt interest income is $3,000, if the distribution is divided in the ratio of the same, the distributive deduction would be $6,800.
= ($8,000 × {$17,000 ÷ $20,000} ) = $6,800.
