Hello, thank you for the response.

I think I found the issue - the Trust has investments which incurred Management Fees.
I had these fees in the software, as they were incurred to earn income.

These fees were being applied against the Capital Gains earned - which does reduce the amount of earned income in the Trust.

Unfortunately, this meant that not all of the Capital Gains was being allocated to the beneficiary - which triggered the software to calculate Minimum Tax.

The Trust only earned Capital Gains and Eligible Dividends.
When I apply the fees against the eligible dividends a similar problem occurs - the software will gross-up the eligible dividends (since they weren't all distributed) and results in a tax owing situation again.

Is there not some way to use the Management Fees for investments to reduce the net income, and also the amount that is allocated to beneficiaries (reducing their net income) without triggering minimum tax / dividend gross-up?  I really thought that fees incurred to earn income should reduce the net income, and therefore the amount of income to be allocated?