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April 8, 2021

Explain how the net investment income surtax is calculated for a trust.

Respond to the following questions and submit your answers in a Word Document to the Unit 5: Assignment

Dropbox. Remember to review and reference the applicable sections of the Tax Code, including Publications

990 and 990-PF.

1. Michelle’s trust made charitable contributions amounting to $4,800 in 2016. Is this likely a simple or

complex trust? Explain your answer.

2. In relation to charitable contributions and distribution of income, explain two features that distinguish a

simple trust from a complex trust.

3. What purpose is served by the distributable net income (DNI) of a trust?

4. Explain how the net investment income surtax is calculated for a trust.

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