Solved: What is the difference between 1st & 2nd tier on a 1041 distribution??
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

What is the difference between 1st & 2nd tier on a 1041 distribution??

 
1 Best answer

Accepted Solutions
Highlighted
Level 15

What is the difference between 1st & 2nd tier on a 1041 distribution??

"What is the difference between 1st & 2nd tier on a 1041 distribution??"

First tier distributions are distributions of current income that are required to be made according to the terms of the governing instrument and the applicable local law (whether actually made or not).

Second tier distributions are any other amounts paid, credited, or required to be distributed (and actually distributed).

See https://www.irs.gov/instructions/i1041#idm139674712043984

View solution in original post

1 Reply
Highlighted
Level 15

What is the difference between 1st & 2nd tier on a 1041 distribution??

"What is the difference between 1st & 2nd tier on a 1041 distribution??"

First tier distributions are distributions of current income that are required to be made according to the terms of the governing instrument and the applicable local law (whether actually made or not).

Second tier distributions are any other amounts paid, credited, or required to be distributed (and actually distributed).

See https://www.irs.gov/instructions/i1041#idm139674712043984

View solution in original post

v
Privacy Settings