Living Trust Distributions: First Tier vs Second Tier

[TECTopca]

For a Living Trust distributions: If I have let's say $1,000 of net  income from interest or rent I understand that I record that as a first tier. What about distributions that exceed income  but are from the sale of property or just cash from a checking account? Do I record those as 2nd tier or not record at all since I do not believe they are taxable?  These distributions will be well under any inheritance limits. Thank you.

[tagteam]

Distributions of corpus (principal) do not need to be reported on your 1041.

[TECTopca]

tku