The Distributable Net Income (DNI) of a Fiduciary Taxpayer

question 59

Multiple Choice

The distributable net income (DNI) of a fiduciary taxpayer:

• A) Constitutes the maximum amount for the fiduciary's distribution deduction.
• B) Specifies the character of the distributions in the hands of the year's income beneficiaries.
• C) Marks the maximum amount of gross income that income beneficiaries must report when receiving distributions.
• D) All of the above.

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Definitions:

Garnishee Order

A legal order issued by a court that requires a third party to withhold the assets of a debtor, typically used to secure payment of a debt or judgment.

Writ of Execution

A court order that enables the enforcement of judgments, typically by seizing and selling the debtor's property.

Privative Clause

Terms in a statute that attempt to restrict the right of judicial review

Administrative Tribunal

is a government body that makes judicial decisions on administrative matters, often related to public services or benefits.