Distributable Net Income - DNI


DEFINITION of 'Distributable Net Income - DNI'

In the case of an income trust, an amount that is transferable to unitholders. In the case of an estate trust, the amount to be distributed to a beneficiary. Distributable net income is the maximum amount received by a unitholder or a beneficiary that is taxable; any amount above this figure will be tax free.

BREAKING DOWN 'Distributable Net Income - DNI'

Distributable net income is seen as a close estimate of the true economic value the distribution would provide, but the actual amount paid out to those designated will most likely vary. At times, DNI is paid out to minimize the tax burden levied on the trust itself, and it can also provide a steady income to a beneficiary or a unitholder.

  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Beneficial Interest

    The right to receive benefits on assets held by another party. ...
  3. Income Trust

    An investment trust that holds income-producing assets and trades ...
  4. Blind Trust

    A trust in which the executors have full discretion over the ...
  5. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  6. Estate

    All of the valuable things an individual owns, such as real estate, ...
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