Question: In the current year, Maddox Trust, a complex trust, distributed an asset with a $42,000 adjusted basis and a $75,000 FMV to its sole beneficiary,

In the current year, Maddox Trust, a complex trust, distributed an asset with a $42,000 adjusted basis and a $75,000 FMV to its sole beneficiary, Marilyn Maddox-Mason. The trustee elected to recognize gain on the Marilyn received no other distributions from the trust during the year. The distributable net income for the year was $87,000, and none of it was from tax-exempt sources.
a. What is the trust’s deduction?
b. On her individual income tax return, how much gross income should Marilyn report from the trust?
c. What is Marilyn’s basis in the asset distributed in kind from the trust?

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