タグ:Distributable Net Income ( 1 ) タグの人気記事

--- 【Question from yuwa-san】------------------------------------------
3)DNI
Distributable Net Income for the estate and trust includes tax exempt incomes but not capital gains(as this is attribute to "principal). However, adjusted total income for estate and trust under Form 1041 does not include tax exempt income but include capital gain. Is this correct understanding?
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Yeah, I think your statement is correct, though it might be a little bit confusing if you state in such a way as above.

But things are very understandable when you actually have a look at the Form 1041.

Income:
e.g.) interest income, ordinary dividends, business income, rents,
and CAPITAL GAINS

Deductions:
e.g. ) interest expense, tax expense, fiduciary fees, charitable deductions,
attorney/accountant fees,

Adjusted total income: Income – Deductions

Other deductions:
Income distribution deduction, Estate tax deductions, etc.

Taxable Income: Adjusted total income - Other deductions

【FOR TAXATION PURPOSE】
 It's of no wonder that "tax exempt income" is excluded from taxable income   
 whereas capital gains could be included because it is GAIN and Gains shall be
 taxed basically.

明日は最後のtax benefit ruleについて。
[PR]
by nn_77 | 2009-04-15 23:07 | >REG | Comments(0)