2 Replies 2
I agree that DNI carries out all income on a final return. What is worrying me is that the calculations for portion of 8960 starting at Line 18 make some sense. The estate had interest, dividends, net rental income, a nonqualified annuity (large dollars), and IRA and a 403(b) (even larger dollars). All income except for the qualified plans factor into the 8960 calculations. They make up approximately 30% of all the assets, while the qualified plans are the other 70% of value. The deduction allocation on those workheets is reducing the charitable deduction (two charities totaling 40% of residue) by about 30% and other deductions by about 29%. That is what is leaving over $6,000 that is being determined as "undistributed income." The NIIT on $6,000 is $229.