A trust passes through to its income beneficiaries the data needed to compute the domestic production activities deduction.

Question

Quizplus · Accepted Answer

This is true. A trust that is engaged in a trade or business may be eligible for the domestic production activities deduction (DPAD), and this deduction can pass through to the trust's income beneficiaries. To compute the DPAD, the trust must provide its income beneficiaries with the necessary data, such as the trust's qualified production activities income (QPAI) and domestic production gross receipts (DPGR).

A Trust Passes Through to Its Income Beneficiaries the Data