2018 UltraTax CS
New (tax) year, new help!
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
What causes a difference between accounting income (AI) and distributable net income (DNI)?
Answer
The following items cause the majority of the differences between accounting income (AI) and distributable net income (DNI).
| Item | Accounting income | Distributable net income |
|---|---|---|
| Income and deductions allocated to corpus | Income and deductions are excluded from accounting | Income and deductions are included |
| Passive loss | Entire loss is included | Loss determined on Form 8582 is included |
| Miscellaneous deductions | Entire deduction is included | Due to the Tax Cuts and Jobs Act, no deduction is allowed |
| Taxes | Entire deduction is included | Due to the Tax Cuts and Jobs Act, the deduction is limited to $10,000 |
| Screen 1099R | Gross distribution is included | Taxable income is included |
| Pass-through activities |
Actual cash or property distributions received is included (entered on Screen K1-3) Note: To include the income or losses reported on the schedule K-1 in accounting income instead of distributions received, enter X in the Include income reported instead of distributions in accounting income field in Screen Dist in the Allocation folder. |
Income and deductions reported on Schedule K-1 are included |
Related topic: 1041-US: Accounting and corpus income FAQs
Was this article helpful?
Thank you for the feedback!