The Sterling Trust owns a business and generated $100,000 in depreciation deductions for the tax year. Mona is one of the income beneficiaries of the entity. Given the following information, can Mona deduct any of the Sterling depreciation on her Form 1040? If so, how much is her deduction?
|
Sterling’s taxable income from the business |
$ 800,000 |
|
Sterling’s gross income from the business |
4,000,000 |
|
Mona’s share of trust accounting income |
500,000 |
|
Total trust accounting income |
2,500,000 |
|
Mona’s share of distributable net income |
1,200,000 |
|
Total distributable net income |
1,600,000 |