I'm stuck in discretionary distribution as TurboTax stated from the following link. https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-a-Schedule-K-1-Form-1041--Estat.... The link stated that "If the income distribution is discretionary, meaning the trustee or estate administrator has authority to decide whether beneficiaries will receive distributions, the payments aren’t deductible on 1041 and are not reported on Schedule K-1. The trust or estate is responsible for paying the income tax on these distributions, not the beneficiaries."
However, my accountant insisted that no matter the character of the distribution, if the trustee distributed to the beneficiary, then it will be taxable on beneficiary's individual tax return. Is this correct?
