2. As a general rule, amounts included in the income of a trust's beneficiary under subsections 104(13), 104(14) or 105(2) (described in ¶s 1(a) to 1(c) above) are deductible by the trust under subsection 104(6) or 104(12), as applicable, in computing its income. A trust's deduction under subsection 104(12) pertains to that part of the trust's "accumulating income" that is included in a beneficiary's income under a subsection 104(14) preferred beneficiary election. Paragraph 104(6)(b) generally provides for a deduction by a trust of the following amounts:
- an amount included in the income of the trust that is paid or becomes payable to a beneficiary; and
- an amount included in a beneficiary's income under subsection 105(2).