[Megatron]

Hey peeps, I am taking Reg on 11/30/14 and was wondering if anyone has some sort of mnemonic or something that helped remembering or how to approach Distributable Net Income for Trust? Becker seems to touch a little bit on it, but don’t think I was prepared.

Thanks in advance,

Megatron

FAR - 77
BEC - 77
AUD - 89
REG - 85

[leslie4real]

Funny you should ask that question. I barely passed REG with 78 and the reason i was so worried after the exam is that i had a sim on Trust. Just know the basic calculation and you should be fine (Little table on Becker R4-62) know it, and know what's included in Gross income and deductions. I could have passed with at least 85 if i did not keep subtracting the adjusted tax-exempt interest (i guess because of the title of the account, there's tendency to subtract it. Don't make that mistake! Easy calculation on DNI, know what's included in Gross income and deductions and example p. R4-66 and difference between simple and complex Trust. I was so bummed out especially the questions were easy calculation and worst i had just reviewed Trust an hour before the exam.

FAR: 80
AUD: 81
REG: 78
BEC: 76

[Megatron]

Thanks for the suggestion Leslie! It's amazing how many questions one would get on such a small part of the Becker Review. But then again, I guess every little thing in Becker has a chance of having a couple of questions asked.

FAR - 77
BEC - 77
AUD - 89
REG - 85

[jgmart04]

I know a coudl be asking a lot, but would you mind posting that Becker table here? I have Wiley and am having similar troubles that the OP is having.

Thanks

[Mika]

I used Roger and he gives me the below table (I assumed the logic behind is the same)

Trust/Estates

Gross Income

– Interest, Dividend, Rent

– Capital Gain

Deduction

– Trustee management fee

– Charity (100%, not 50%/30% floor)

– Income distribution deduction

Exemptions <– remember is EXEMPTIONS, very important terms

– Simple Trust $300

– Complex Trust $100

– Estate $600

---

= Taxable income

For DNI, which is your payoutable profits (Form 1041 Page 2 Sch B Line 7)

Gross income

– Interest (incl muni bond interest), Dividend, Rent <– same as your Trust and Estate above

(NO cap gain, and cap loss is $3,000)

Deduction

SAME but don't take into account of Income distribution deduction, and Trustee management fee is subject to taxable income

Exemption

ZERO

_______________

= DNI

REG - 80 (02/13/2015) Roger + Ninja Flash Card + Ninja MCQ + Becker's Note
FAR - 84 (05/29/2015) Roger + Ninja MCQ + Some Wiley book questions
BEC - 77 (08/27/2015) Roger + Ninja MCQ + Half Wiley book questions
AUD - 87 (08/28/2015) Roger + Ninja MCQ + Half Wiley book questions

[Tux]

I'm studying REG too.

Haven't gotten to Trusts yet.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[jgmart04]

that helps a lot. Thanks

[Author]

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