Discussion:Trust distributions "credited"
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Discussion Forum Index --> Advanced Tax Questions --> Trust distributions "credited"
Discussion Forum Index --> Tax Questions --> Trust distributions "credited"
| 18 November 2009 | |
| The code refers to deductions for distributions "properly paid or credited" to the beneficiaries.
Other than the 65 day rule, is there any instance in which a distribution can be "credited" to a beneficiary but not paid, but still taken as a distribution deduction on the 1041 and reported on beneficiary's k-1? | |
| 18 November 2009 | |
| The first one that comes to my mind is the Simple Trust that is required to distribute the income but has not factually done so during the year in question nor has it done so during the 65 day period. It would then be "credited" would it not? | |
| 18 November 2009 | |
| Ah yes...and the key to that and the lots of others is in the word "required" and the concept of constructive receipt. | |
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