This year,the Nano Trust reported $50,000 entity accounting income and $40,000 distributable net income (DNI).Nano distributed $30,000 cash to Horatio,its sole income beneficiary.Nano is a complex trust.Nano's distribution deduction is:

Question

Quizplus · Accepted Answer

The distribution deduction for a complex trust is limited to the lesser of the actual distribution or the distributable net income (DNI). Here, the actual distribution is $30,000, which is less than the DNI of $40,000, so the deduction is $30,000.

This Year,the Nano Trust Reported $50,000 Entity Accounting Income and $40,000