What is Fiduciary accounting income?
In short
Fiduciary accounting income is a trust's income as defined by the trust document and state law, as opposed to taxable income. It determines what a trust must pay to income beneficiaries.
Key takeaways
- Capital gains are usually allocated to principal, not income.
- A simple trust must distribute all its fiduciary accounting income each year.
- It is one of three measures, with taxable income and distributable net income.
Where it's tested
REG: Trusts, Estates & Gift Tax Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, what is the lifetime estate and gift tax exemption per individual beginning in 2026, and is it scheduled to sunset?