Question: How is IRA distribution reported on Form 1041 to reflect full amount taxable to beneficiary?  Specifically, which line(s) reflect the income and the principal portion of the IRA RMD?

Facts assumed:

• Trust is verified to be a See-Through Trust.
• Traditional Inherited IRA has an RMD of $100,000, which is taken and immediately paid out to the sole beneficiary.
• Trust allows Trustee broad discretion (ie: Accumulation Trust), but plan is to not hold RMD funds from the traditional Inherited IRA.  Roth Inherited IRA may be retained.
• No other Trust activity in this year other than holding the remaining Inherited IRA accounts (ie: no other income or expense).
• Form 1041 will show $100,000 on Line 8 as “Other Income – 1099R”
• Trust document is silent to how the IRA distributions are treated in terms of income versus principal
• “Uniform Act” indicates IRA is 10% income and 90% principal

Assumptions/Unsure points:

• Assuming – Line 18 Income distribution deduction is limited by DNI because of the Accounting treatment caused by the Uniform Act.  Is this actually correct?
• Where is the Principal portion deducted (what Line) since the ENTIRE IRA RMD is on Line 8 as taxable income.  I know the intent of a See-Through Trust is that it is all taxable to the Beneficiary, but I’m trying to figure out this part of the Form 1041.

I am a CPA, but NOT an expert in the area of Trusts and Estates.  I plan to have someone prepare this return who is an expert, but want to make sure I understand what to expect at this point (ie: before year-end when I have no possibility to fix a problem).

Thank you for any input on this.