Thank you. The Illinois publication helps. I must look and see if the cash in the amount of the reserve is actually put in a principal cash account. It might be that it does nothing to do with cash but is buried in the principal retained earnings, implied by the computation on Page 18, but I am still looking. As I understand it, FAI determines what gets currently distributed to the the beneficiary, then DNI, is computed from FAI, and then DNI Deduction is derived from DNI.. DNI can't exceed FAI.. Income Taxation of Trusts and Estates, Acker, Carolina Academic Press 2020 Page 143 says, "...fiduciary accounting income is an important metric for ascertaining distribution deductions. In other words, if you do not know the amount of fiduciary account income, you cannot determine the correct distribution deduction."
I try to an excel sheet, to help me get more confused than usual...
