Difference between accounting income and distributable net income

The following items cause the majority of the differences between accounting income (AI) and distributable net income (DNI).

Item	Accounting income	Distributable net income
Income and deductions allocated to corpus	Income and deductions are excluded from accounting.	Includes income and deductions.
Passive loss	Includes entire loss.	Includes loss determined on Form 8582.
Miscellaneous deductions	Includes entire deduction.	Deductions aren't allowed.
Taxes	Includes entire deduction.	The deduction is limited to $10,000.
Screen 1099-R	Includes gross distribution.	Includes taxable income.
Pass-through activities	Includes actual cash or property distributions received (entered on the K1-3 window). note To include the income or losses reported on Schedule K-1 in accounting income, don't enter distributions received. Go to the Dist screen in the Allocation folder. Enter X in the Include income reported instead of distributions in accounting income field.	Includes income and deductions reported on Schedule K-1.

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