[Topsya]

a distribution to an estate’s sole beneficiary for the 2012 calendar year equaled $15,000, the amount currently required to be distributed by the will. The estate’s 2012 records were as follows:

Estate Income:

$40,000 Taxable Interest

Estate Disbursements:

$34,000 Expenses attributable to taxable interest

What amount of the distribution was taxable to the beneficiary?

a. $40,000

b. $15,000

c. $6,000

d. $0

The correct answer is “c” $6,000 – the amount of income that is taxable to beneficiary is limited to DNI

But what about Distribution Deduction? Wouldn’t it also be $6,000 which brings the taxable income to $0???

HELP!!!!!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Lindrobe]

The distribution deduction applies to the ESTATE's taxable income. The question asks for the amount of the distribution that is taxable to the beneficiary.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

The distribution deduction applies to the ESTATE's taxable income. The question asks for the amount of the distribution that is taxable to the beneficiary.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Topsya]

ohhhhhhhhh

THANK YOU SO SO MUCH

makes sense now

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

ohhhhhhhhh

THANK YOU SO SO MUCH

makes sense now

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Lindrobe]

No problem 😉

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

No problem 😉

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Topsya]

Hey we have exam on the same day! Cool!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

Hey we have exam on the same day! Cool!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Author]

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