“As you add that income and you multiply it, you can see that you can get some really big savings,” Reuter said.
Reuter also noted that the rule provides the option of amending the distribution from the trust if the taxes were filed using income estimates. In that case, if the estimated amount exceeded the final statement amount, you could still take the deduction as long as it is distributed out before March 6, he said.
Reuter said t he 65-Day Rule is not new, but many may not be famliar with it. “It’s in the fine print within the tax code, but I don’t know anybody who reads the tax code for fun,” he said.