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  2. One common way of measuring income inequality is to rank all households by income, from lowest to highest, and then to divide all households into five groups with equal numbers of people, known as quintiles. This calculation allows for measuring the distribution of income among the five groups compared to the total.
    learn.saylor.org/mod/book/view.php?id=31170&cha…
    In order to look at income distribution, we need to see what percentage of total income each segment makes, rather than the actual amount of money each makes. Since each of the segments is equal in size, we don't need to worry about weighting the average incomes, and can do a straightforward part-over-whole calculation of each segment's earnings.
    www.sparknotes.com/economics/micro/incomedistr…
    The formula to calculate the figure is as follows: Distributable Net Income (DNI) = Taxable Income - Capital Gains + Tax Exemption In instances where there are capital losses, that figure replaces the capital gains and is added to the formula instead of subtracted.
    www.investopedia.com/terms/d/distributablenetinco…
     
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    How do you calculate income distribution?In order to look at income distribution, we need to see what percentage of total income each segment makes, rather than the actual amount of money each makes. Since each of the segments is equal in size, we don't need to worry about weighting the average incomes, and can do a straightforward part-over-whole calculation of each segment's earnings.
    What is a distribution & how does it work?A distribution is a payment made from a fund—an estate or an income trust—to a beneficiary. DNI gives beneficiaries a reliable income source while minimizing the amount of income taxes paid by the trust. Just like individuals, estates and non-grantor trusts must file income tax returns.
    What is income distribution in economics?In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes economic inequality which is a concern in almost all countries around the world.
    How do I calculate distributable net income (DNI)?Enter the net capital gain (flip your tax return to its front, and place the number you see on line 4 onto Schedule B, line 6 on the back). Subtract that number from your total of Schedule B, lines 1 and 2, to arrive at the distributable net income (DNI), or the total amount that could possibly be taxed to the beneficiary.
     
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