Convert a trust distribution into an estimated after-tax amount by separating taxable income, capital-gain treatment, and nontaxable principal. This gives a clearer spendable-value estimate than applying one rate to the entire distribution.
After-tax value = distribution − ordinary portion × ordinary rate − gain portion × gain rate
The main result estimates spendable value after applying separate rates to the entered tax-character portions.
This is a planning estimate, not tax, legal, or investment advice. Actual treatment depends on jurisdiction, trust terms, holding periods, and individual circumstances.
An $80,000 distribution that is 40% ordinary income and 20% capital gain, at 30% and 18% tax rates, creates $12,480 of estimated tax and $67,520 of after-tax value.
The calculator rejects that combination because the remaining principal share cannot be negative.
Not necessarily. The calculator treats the residual as nontaxable only as a planning assumption.
Yes. Enter combined effective rates if that matches your planning purpose.
No. It applies user-entered tax-character shares rather than determining trust accounting income or DNI.
Only the ordinary-income portion uses that rate; gains may use another rate and principal may be nontaxable.
| Character | Modeled treatment |
|---|---|
| Ordinary income | Ordinary rate |
| Capital gain | Capital-gain rate |
| Remaining principal | Nontaxable in this model |