Consider the Term Distributable Net Income as It Is Used

question 55

Essay

Consider the term distributable net income as it is used with respect to the Federal income taxation of trusts and estates. How is this amount computed? Where is it used in computing the parties' taxable incomes?

---

Definitions:

Rational Expectations

The economic theory that individuals make decisions based on their expectations of future economic conditions, which are formed by using all available information.

Velocity of Circulation

The rate at which money changes hands in an economy, illustrating the activity level of economic transactions.

Money Supply

The sum of financial resources present within an economy at any given moment.

Economic Conditions

The state of the economy at a given time, including factors such as GDP, unemployment rates, and inflation.