Page 182 - Other Income for Individuals

Other Income: Estates and Trust
Current income required to
be distributed.
 If you’re the beneficiary
of an estate or trust that
must distribute all of its
current income, you
must report your share
of the distributable net
income, whether or not
you actually received it.
Losses.
 Losses of estates and
trusts generally aren’t
deductible by the
beneficiaries.
Current income not required to be
distributed.
• If you’re the beneficiary of an
estate or trust and the
1 fiduciary has the choice of
whether to distribute all or
2 part of the current income, you
must report:
• All income that’s required
to be distributed to you,
whether or not it’s actually
distributed, plus
4 • All other amounts actually
3 paid or credited to you, up to
the amount of your share of
distributable net income.
How to report.
 Treat each item of income the same way that the
estate or trust would treat it. For example, if a
trust's dividend income is distributed to you, you
report the distribution as dividend income on your
return.
 The same rule applies to distributions of tax-exempt
interest and capital gains.
 The fiduciary of the estate or trust must tell you the
type of items making up your share of the estate or
trust income and any credits you’re allowed on your
individual income tax return. 180