Using Exhibit 20.4 as a guide, describe the computation of a fiduciary entitys accounting income, taxable income,
Question:
Using Exhibit 20.4 as a guide, describe the computation of a fiduciary entity’s accounting income, taxable income, and distributable net income.
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Step 1 Determine the accounting Income of the entity Step 2 Compute entity taxable Income before the distribution deduction Step 3 Determine distributable net income (DNI) and the distribution deduction Step 4 Compute entity taxable income (step 2 less the deduction determined in step 3) Step 5 Allocate DNI and its character to the beneficiarles. Use the tier system, if necessary.
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Step One Determine entity accounting income Step Two Compute entity tax...View the full answer
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Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
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