Taxation of Estates and Gifts

Distributions Deduction

To calculate the distributions deduction:

1. Take the lesser of:
   • All distributions minus the charitable deductions
   • DNI
2. Subtract the net tax-exempt income ($\mathrm{T<!---->EI}-\mathrm{Direct\; T<!---->EI\; Expenses}-\mathrm{Allocated\; Indirect\; Expenses}$)