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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Why is Schedule B, line 9 not equal to distributable net income for a simple trust?

Answer

For simple trusts and other trusts distributing 100 percent of income, accounting income prints on Schedule B, line 9. In some situations, accounting income is not equal to distributable net income. This is attributable to differences between tax and book income, such as passive loss limitations and limits on miscellaneous deductions, or to items other than capital gains allocated to corpus. The Accounting Income and Distributable Net Income Detail Information Worksheet shows a comparison of the two numbers. To adjust accounting income, use the applicable fields in the Accounting Income section of Screen Dist in the Allocation folder.

Related topic: 1041-US: Beneficiary distribution calculations FAQs

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