Tax Preparation Help  
Publication 559 2008 Tax Year

Form 1041 (2007) Page 2. Summary: This is an example of Form 1041 (2006), page 2 as pertains to the text. The line items are completed as follows:

Under “Schedule B: Income Distribution Deduction”:
1. Adjusted total income (see page 22 of the instructions)” field contains 12,625
6. Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the loss as a positive number” field contains negative 200
7. Distributable net income (D.N.I.). Combine lines 1 through 6. If zero or less, enter 0” field contains 12,425
10. Other amounts paid, credited, or otherwise required to be distributed” field contains 2,000
11. Total distributions. Add lines 9 and 10. If greater than line 8, see page 22 of the instructions” field contains 2,000
13. Tentative income distribution deduction. Subtract line 12 from line 11” field contains 2,000
14. Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter 0” field contains 12,425
15. Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18” field contains 2,000
Under “Schedule G: Tax Computation”:
1a. Tax: Schedule D (Form 1041)” checkbox checked, field contains 2,486
1c. Tax: Alternative minimum tax (from Schedule I, line 56)” field contains 0
1d. Tax: Total. Add lines 1a through 1c” field contains 2,486
4. Subtract line 3 from line 1d. If zero or less, enter 0” field contains 2,486
5. Recapture taxes.” field contains 0
7. Total tax. Add lines 4 through 6. Enter here and on page 1, line 24” field contains 2,486
Under “Other Information”:
1. Did the estate or trust receive tax-exempt income?--No” checkbox checked
2. Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract agreement or similar arrangement?--No” checkbox checked
3. At any time during calendar year 2006, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country?--No” checkbox checked
4. During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust?--No” checkbox checked
5. Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing?--No” checkbox checked
9. Are any present or future trust beneficiaries skip persons? See page 25 of the instructions.--No” checkbox checked

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