Taxation of Estates and Gifts

Distributions Deduction


To calculate the distributions deduction:

  1. Take the lesser of:
  2. Subtract the net tax-exempt income (TEIDirect TEI ExpensesAllocated Indirect Expenses)
65-Day Rule

If within the first 65 days of any taxable year of an estate or a trust, an amount is properly paid or credited, such amount shall be considered paid or credited on the last day of the preceding taxable year.

You must elect to do so though.