Tom is the trustee of the Generous Trust. The trust agreement directs the trustee to pay all net fiduciary accounting at least annually to Ms. Behaven. During 2013 the trust earned $10,000 of net fiduciary accounting income, consisting of taxable bond interest and dividends paid on corporate stock. Tom made no trust distributions of any kind to Ms. Behaven during 2013.
a. The income tax deduction for distributions to beneficiaries (beneficiary, in this case) is not available to the trust for 2013.
b. The income tax deduction for distributions to beneficiaries is available to the trust for 2013.
c. The income tax deduction for distributions to beneficiaries will be available to the trust in 2013 if Tom distributed $10,000 to Ms. Behaven by April 15, 2014, the filing date for the trust's 2013 Form 1041.
d. The 2013 income tax deduction for distributions to beneficiaries that would have been available had distribution been properly made must be carried forward to the next tax year.