A fiduciary's distribution deduction assures that current-year income is taxed only once.

Question

Quizplus · Accepted Answer

A fiduciary's distribution deduction is meant to ensure that the income of a trust or estate is only taxed once, either at the entity level or when it is distributed to beneficiaries. This deduction is subtracted from the entity's taxable income and is generally equal to the total amount of distributions made to beneficiaries during the tax year. Therefore, the answer is true.

A Fiduciary's Distribution Deduction Assures That Current-Year Income Is Taxed