Judy can claim one-third of the Sweet Estate's cost recovery deductions, because she received one-third of the fiduciary's distributable net income (DNI).

Question

Quizplus · Accepted Answer

The ability to claim cost recovery deductions from an estate is not directly tied to the proportion of distributable net income (DNI) received. It depends on the specific details of the estate's operation and tax structure, not just the distribution of DNI.

Judy Can Claim One-Third of the Sweet Estate's Cost Recovery