In determining the adjusted net income of an operating foundation for taxable years beginning after 1981, the income portion of a distribution from a split-interest trust to a private foundation is the greater of: The amount of the distribution that is treated as trust income (under the governing instrument and local law), or The guaranteed annuity, or fixed percentage of the fair market value of the trust property as determined annually, that the private foundation is entitled to receive for a particular tax year, regardless of when the amount is actually received. Return to Life Cycle of a Private Foundation
