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A complex trust is entitled to a $100 exemption.
Complex Trust Taxation Complex trusts can take deductions when computing taxable income for the year. This deduction is equal to the amount of any income the trust is required to distribute for the year. A complex trust qualifies for a yearly $100 exemption as well.
Simple trusts have a $300 exemption. Complex trusts generally have a $100 exemption.
A simple trust must distribute all its income currently. Generally, it cannot accumulate income, distribute out of corpus, or pay money for charitable purposes. If a trust distributes corpus during a year, as in the year it terminates, the trust becomes a complex trust for that year.