Cost recovery deductions are assigned pro rata to the recipients of an estate's accounting income.

Name: Cost recovery deductions are assigned pro rata to the recipients of an estate's accounting income.
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Cost recovery deductions, such as depreciation or depletion, are allocated pro rata (proportionally) to the recipients of an estate or trust's accounting income based on the allocation of the income itself. Each recipient's share of the deductions corresponds to their share of the income distribution.

Cost Recovery Deductions Are Assigned Pro Rata to the Recipients