Income Taxation Of Trusts And Estates - Trust Income  Trust
Income    Trust Accounting Income Trust Accounting Income refers
to all of the dividends, interest, ordinary gain, real estate
income, royalty income and any other income that is generated by
the trust for a given tax year.  The importance of
distinguishing accounting income from the corpus or principal of
the trust again lies in the unique difference between simple and
complex trusts. Simple trusts are required to pay out all of the
accounting income to the beneficiary of the trust. Complex
trusts are much more flexible in that they can pay out dividends
and principal to the beneficiaries, or just let the accounting
income accumulate within the trust.  Charitable donations
(complex trusts only) can be deductible if they are paid
specifically from the current year's gross accounting income.
Trust Taxable Income Trust or estate taxable income will be
treated as taxable income to either the beneficiary or the trust
itself, but not taxable to both. Bec