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# How do you calculate Accounting income complex trust? Line 8 of Schedule ? Capital

Customer Question
How do you calculate Accounting...
How do you calculate Accounting income for a complex trust? Line 8 of Schedule B?
Capital gains are deducted, net tax exempt interest is added, what about tax refunds? What is the purpose of this calculation? Is it a cumulative calculation?
Dividends of \$4376, Capital Gains of \$7383, loss of (\$21) tax refund of \$395, tax exempt income of \$950, taxes paid \$2250.
Submitted: 2 years ago.Category: Tax
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7/9/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,876
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi,... not sure I understand your question..You asked you question and then nsswered it..Essenially &quot;Trust accounting income is the income and expense items that are used to determine the amount that certain beneficiaries will receive from the trust each year. Generally speaking, it is all revenue minus all expenses paid.&quot;
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
So just do the math... and if it&#39;s a positive number, that&#39;s your number, and if it&#39;s a loss, put the word &quot;loss&quot; on line 8 &amp; complete schedule K-1 based on the instructions.
Customer reply replied 2 years ago
OK, obviously I do understand this concept. The difficulty I am having in reviewing past filed 1041's for this particular client is that the Accounting income reported on is not holding to this calculation and I am trying to figure out why.
The Trust document does not specify how to calculate accounting income; IRC does not cover this; and I am not finding the section in UPIA in NJ.
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,876
12,876 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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