The undistributed net investment income for the S portion is $27,600 and is determined as follows:
Net Rental Income | $21,000 |
Capital Gain | 7,000 |
Trustee Annual Fee | (400) |
Total S portion undistributed net investment income | 27,600 |
Dividend Income | $15,000 |
Interest Income | 10,000 |
Deductible Capital Loss | (3,000) |
Trustee Annual Fee | (600) |
Distributable net income distribution | (9,000) |
Total non-S portion undistributed net investment income | 12,400 |
S portion's undistributed net investment income | $27,600 |
Non-S portion's undistributed net investment income | 12,400 |
Combined undistributed net investment income | 40,000 |
Dividend Income | $15,000 |
Interest Income | 10,000 |
Deductible Capital Loss | (3,000) |
Trustee Annual Fee | (600) |
Distributable net income distribution | (9,000) |
S Portion Income | 27,600 |
Adjusted gross income | 40,000 |
Category | Class | Tax rate (percent) | Amount |
Ordinary Income | Interest | 39.6 | $4,000 |
Net Rental Income | 39.6 | 8,000 | |
Non-Qualified Dividend Income | 39.6 | 2,000 | |
Qualified Dividend Income | 20.0 | 10,000 | |
Capital Gain | Short-Term | 39.6 | 39,000 |
Unrecaptured Section 1250 Gain | 25.0 | 1,000 | |
Long-Term | 20.0 | 560,000 | |
Other Income | None | ||
Total undistributed income as of January 1, 2013 | 624,000 |
Pursuant to § 1.1411-3(d)(1)(iii) , none of the $624,000 of undistributed income is accumulated net investment income (ANII) because none of it was received by CRT after December 31, 2012. Thus, the entire $624,000 of undistributed income is excluded income (as defined in § 1.1411-1(d)(4) ).
Category | Class | Excluded/ANII | Tax rate (percent) | Amount |
Ordinary Income | Interest | NII | 43.4 | $7,000 |
Interest | Excluded | 39.6 | 4,000 | |
Net Rental Income | Excluded | 39.6 | 8,000 | |
Non-Qualified Dividend Income | Excluded | 39.6 | 2,000 | |
Qualified Dividend Income | NII | 23.8 | 9,000 | |
Qualified Dividend Income | Excluded | 20.0 | 10,000 | |
Capital Gain | Short-Term | NII | 43.4 | 4,000 |
Short-Term | Excluded | 39.6 | 39,000 | |
Unrecaptured Section 1250 Gain | Excluded | 25.0 | 1,000 | |
Long-Term | NII | 23.8 | 11,000 | |
Long-Term | Excluded | 20.0 | 560,000 | |
Other Income | None |
Category | Class | Excluded/ANII | Tax rate (percent) | Amount |
Ordinary Income | Interest | NII | 43.4 | $7,000 |
Interest | Excluded | 39.6 | 4,000 | |
Net Rental Income | Excluded | 39.6 | 8,000 | |
Non-Qualified Dividend Income | Excluded | 39.6 | 2,000 | |
Qualified Dividend Income | NII | 23.8 | 9,000 | |
Qualified Dividend Income | Excluded | 20.0 | 10,000 | |
Capital Gain | Short-Term | NII | 43.4 | 4,000 |
Short-Term | Excluded | 39.6 | 6,000 | |
Unrecaptured Section 1250 Gain | Excluded | 25.0 | None | |
Long-Term | NII | 23.8 | None | |
Long-Term | Excluded | 20.0 | None |
The amount included in A's 2013 net investment income is $20,000. This amount is comprised of $7,000 of interest income, $9,000 of qualified dividend income, and $4,000 of short-term capital gain.
Category | Class | Excluded/ANII | Tax rate (percent) | Amount |
Ordinary Income | Interest | None | ||
Net Rental Income | None | |||
Non-Qualified Dividend Income | None | |||
Qualified Dividend Income | None | |||
Capital Gain | Short-Term | Excluded | 39.6 | $33,000 |
Unrecaptured Section 1250 Gain | Excluded | 25.0 | 1,000 | |
Long-Term | ANII | 23.8 | 11,000 | |
Long-Term | Excluded | 20.0 | 560,000 | |
Other Income | None |
26 C.F.R. §1.1411-3