65 Day Rule For Trust Distributions 2025. Other Tax Issues Marcia Urban Agenda Fiscal One of the tax planning tools available to fiduciaries of estates and non-grantor trusts is the 663 (b) election, also known as the "65-day rule." Simply put, a 663 (b) election allows distributions made to beneficiaries within 65 days of year-end to be counted as prior-year distributions. Under the Internal Revenue Code's 65-day rule, calendar-year trusts have until March 6, 2025, to distribute trust income to beneficiaries equal to the greater of the trust's accounting income or its distributable net income (DNI) for the year and treat those amounts as if they were made on the last day of the previous year.
What is the 65day rule for trusts? Probate Attorneys NJ from probateattorneysnj.com
The 65-day rule under Internal Revenue Code 663 (b) allows trustees of a trust to treat distributions that are made within the first 65 days of the trust's tax year as if they were paid or credited on the last day of the preceding tax year In summary, the 65-Day Rule offers fiduciaries a valuable tool for managing the taxable income of a trust and optimizing the income distribution deduction
What is the 65day rule for trusts? Probate Attorneys NJ
The election is made by the trustee on the trust's tax return deadline of April 15, 2025, or September 30, 2025, for returns on extension. Under the Internal Revenue Code's 65-day rule, calendar-year trusts have until March 6, 2025, to distribute trust income to beneficiaries equal to the greater of the trust's accounting income or its distributable net income (DNI) for the year and treat those amounts as if they were made on the last day of the previous year. For 2025, any distributions from January 1, 2025, to March 6, 2025, will count as a 2024 distribution if this election is made by the trustee
65 Day Rule for Complex Trusts Wheeler Accountants, LLP. [IRC 663(b).] This rule applies to a complex trust; a simple trust where net income is required to be distributed to trust beneficiary yearly. This 65-day rule provides an opportunity to shift income out of a trust and to beneficiaries, even if those distributions are made outside of the 2024 calendar year
Today’s presenters Alissa Bowers Private Client Services Manager. For 2025, any distributions from January 1, 2025, to March 6, 2025, will count as a 2024 distribution if this election is made by the trustee In summary, the 65-Day Rule offers fiduciaries a valuable tool for managing the taxable income of a trust and optimizing the income distribution deduction