comparison of trust accounting income, distributable … income.pdf · comparison of trust...

Comparison of Trust Accounting Income,Distributable Net Income, and

Taxable IncomeTrust Accounting Income Distributable Net Income Taxable Income

Income:Taxable Interest x x xTax Exempt Interest x xU.S. Government Interest x x xDividends x x xPartnership Income x x xPassive Loss Limitation x xOther Estate or Trust Income x x xRental Income x x xRoyalty Income x x xSchedule C (Business Income) x x xCapital Gain (Loss) xOrdinary Gain (Loss) x x x

Expenses:Interest x x xFiduciary Fees y x xInvestment Fees x x xState Taxes y x xFederal Taxes yReal Estate Taxes x x xPersonal Property Taxes x x xLoan Interest Payments x x xLoan Principal PaymentsDepreciation (x) xDepletion (x) x x2% Misc. Deduct. Limitation xAccounting/Attorney Fees y x xExpenses Allocate to Tax Exempt Income x x

Deductions:Exemption xCharitable Deduction x x xIncome Distribution Deduction x

( ) = Depending on trust agreement or trustee's discretiony = Allocated between principal and income but check state law

050903.Trustspreadincome