Solution: ($10,000/$30,000) x $3,000 = $1,000 Allocated to tax-exempt income $3,000 - $1,000 = $2,000 deductible p.14-14; Example C:14-15.14-88.

Solution: ($10,000/$30,000) x $3,000 = $1,000 Allocated to tax-exempt income $3,000 - $1,000 = $2,000 deductible p. C:14-14; Example C:14-15. C:14-88.A trust has distributable net income (DNI) of $50,000, including $30,000 tax-exempt interest income and $20,000 taxable interest income. The trust instrument requires that all income be distributed at least annually, 30% to Jane and 70% to Joe. What is the amount and character of the income that Jane receives?