Trust.....

[OldJack]

Thank you all for your input. Because of your input I was able to search my CS program and found that ALL the calculations necessay were being done and I just had to input the DNI bottom line deduction and assign it to the beneficiary, I chose interest. DNI was $40.
The balance was from corpus, I guess.

If it is a complex trust why would you want to distribute income verses corpus?

[natiro]

Trust

Unless I'm missing something obvious (for example, if much of the 47,000 is from capital gains, which are usually taxed to the trust), why wouldn't DNI be 18,000? If net income on the 1041 is 47,000 and distributions were 18,000, then shouldn't DNI be closer to 18,000 than to 40?

Also, you mentioned that there is rental income. I assume if there is rental income, then there is also depreciation. Whether or not depreciation is reported to the trust on the 1041, or to the beneficiary on the K-1 is a complicated issue which I don't really have time to get into here.

As for whether distributions are from income or corpus, they are generally deemed to come from income first, even if made directly from corpus. In your case, if it's true that there is 47,000 in net income (assuming no capital gains), it would seem to me that DNI should be closer to 18,000.

Again, it's Sunday and I'm tired, so I could be missing something completely obvious. If so, please let me know.

[BOB W]

Dni

Capital gains was 47,087
Rental loss was $8,166
Div & Int was $8,706.
Expenses = $866
DNI was $40.

NEW question> A diagnostic is talking about " active rental real estate is allowed only for estates open less than two years". What does that mean???????

I guess this is not an estate???

[JCH]

I think your software is telling you that the real estate has to be treated as a passive activity. I'm still digesting the rest of the numbers.