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Sorry for a basic question, but I'm not grasping what I'm being told by the 1041 instructions and can't find any clarification.

I have an irrevocable trust, not required to distribute income and they did not in 2019, but it was only $200 of interest income (cash the only trust asset). And they paid accounting fees of $400.

Per the instructions, if they had "any taxable income" they are required to file a 1041. Is taxable income defined as $200? Or $200 less the accounting fees/exemption amount?

I think the latter, which would mean we have no filing requirement, but I can't find any guidance to confirm.

Gross income=$200. Taxable income -$300 ($200-$400-$100 exemption for a complex trust).

Sec 6012(a)(4) and sec 67(e) and sec 642(b)(2).

Thank you for the response and the cites. I assumed that was the case, but couldn't confirm.