diff --git a/src/js/entry/web.js b/src/js/entry/web.js
index db207f678..2d315341b 100644
--- a/src/js/entry/web.js
+++ b/src/js/entry/web.js
@@ -1,4 +1,5 @@
-var types = require('../util/types');
+var types = require('../util/types'),
+    rewriter = require('../util/jsonrewriter');
 
 // Load app modules
 require('../controllers/app');
@@ -137,6 +138,8 @@ var app = angular
 var rippleclient = window.rippleclient = {};
 rippleclient.app = app;
 rippleclient.types = types;
+// for unit tests
+rippleclient.rewriter = rewriter;
 
 // Install basic page template
 angular.element('body').prepend(require('../../jade/client/index.jade')());
diff --git a/src/js/tabs/trust.js b/src/js/tabs/trust.js
index a81165db9..88da71267 100644
--- a/src/js/tabs/trust.js
+++ b/src/js/tabs/trust.js
@@ -332,7 +332,10 @@ TrustTab.prototype.angular = function (module)
         }
 
         obj[line.currency].components.push(line);
-
+        // correctly show "Rippling" flag for incoming trust lines
+        if (_.has(line, 'no_ripple_peer')) {
+          line.no_ripple = line.no_ripple_peer;
+        }
       });
 
       $scope.accountLines = obj;
diff --git a/src/js/util/jsonrewriter.js b/src/js/util/jsonrewriter.js
index bd351027a..10a19cedb 100644
--- a/src/js/util/jsonrewriter.js
+++ b/src/js/util/jsonrewriter.js
@@ -386,20 +386,17 @@ var JsonRewriter = module.exports = {
 
           var high = node.fields.HighLimit;
           var low = node.fields.LowLimit;
+          var viewHigh = high.issuer === account;
 
-          var which = high.issuer === account ? 'HighNoRipple' : 'LowNoRipple';
+          var which = obj.transaction.type == 'trusting' ? (high.issuer === account ? 'HighNoRipple' : 'LowNoRipple') :
+                                                           (high.issuer === account ? 'LowNoRipple' : 'HighNoRipple');
 
           // New trust line
           if (node.diffType === 'CreatedNode') {
-            effect.limit = ripple.Amount.from_json(high.value > 0 ? high : low);
-            effect.limit_peer = ripple.Amount.from_json(high.value > 0 ? low : high);
-
-            if ((high.value > 0 && high.issuer === account)
-                || (low.value > 0 && low.issuer === account)) {
-              effect.type = 'trust_create_local';
-            } else {
-              effect.type = 'trust_create_remote';
-            }
+            effect.limit = ripple.Amount.from_json(viewHigh ? high : low);
+            effect.limit_peer = ripple.Amount.from_json(viewHigh ? low : high);
+
+            effect.type = obj.transaction.type == 'trusting' ? 'trust_create_local' : 'trust_create_remote';
           }
 
           // Modified trust line
diff --git a/test/unit/utilities/jsonRewriterSpec.js b/test/unit/utilities/jsonRewriterSpec.js
new file mode 100644
index 000000000..43a19923e
--- /dev/null
+++ b/test/unit/utilities/jsonRewriterSpec.js
@@ -0,0 +1,25 @@
+'use strict';
+
+describe('JsonRewriter', function() {
+  var rewriter = window.rippleclient.rewriter,
+    account = 'rfXK4fN2AAqH7H5Uo94JQwT88qQkv69pqR',
+    data = {"engine_result":"tesSUCCESS","engine_result_code":0,"engine_result_message":"The transaction was applied. Only final in a validated ledger.","ledger_hash":"3A42FDDA268818463C360402FB37A1D95F4C7463C3C8568535C65358A9AFCFE2","ledger_index":11412348,"meta":{"AffectedNodes":[{"CreatedNode":{"LedgerEntryType":"RippleState","LedgerIndex":"40865600F1D8928F756718AF147BA726784A6C76317C08F9FB0A0530F38F48CE","NewFields":{"Balance":{"currency":"TST","issuer":"rrrrrrrrrrrrrrrrrrrrBZbvji","value":"0"},"Flags":1114112,"HighLimit":{"currency":"TST","issuer":"rfXK4fN2AAqH7H5Uo94JQwT88qQkv69pqR","value":"0"},"LowLimit":{"currency":"TST","issuer":"rp8rJYTpodf8qbSCHVTNacf8nSW8mRakFw","value":"541"}}}},{"ModifiedNode":{"FinalFields":{"Account":"rp8rJYTpodf8qbSCHVTNacf8nSW8mRakFw","Balance":"71363800","Flags":0,"OwnerCount":9,"Sequence":54},"LedgerEntryType":"AccountRoot","LedgerIndex":"8B24E55376A65D68542C17F3BF446231AC7062CB43BED28817570128A1849819","PreviousFields":{"Balance":"71375800","OwnerCount":8,"Sequence":53},"PreviousTxnID":"8E194F430FF573C4BC748FA4B73A0CBA778A50A1855E8677FADBAE16E595CD4E","PreviousTxnLgrSeq":11412343}},{"ModifiedNode":{"FinalFields":{"Flags":0,"Owner":"rp8rJYTpodf8qbSCHVTNacf8nSW8mRakFw","RootIndex":"D7198895F90CB2FBCA3D7DEECABA4104FB92287E8B8B1F26DB94525A5ABC3808"},"LedgerEntryType":"DirectoryNode","LedgerIndex":"D7198895F90CB2FBCA3D7DEECABA4104FB92287E8B8B1F26DB94525A5ABC3808"}},{"ModifiedNode":{"FinalFields":{"Account":"rfXK4fN2AAqH7H5Uo94JQwT88qQkv69pqR","Balance":"118407447","Flags":0,"OwnerCount":7,"Sequence":560},"LedgerEntryType":"AccountRoot","LedgerIndex":"E47087B762FD22F5F36E8B7188BEA18659F443092041684A6C0C757609E1DF86","PreviousTxnID":"8E194F430FF573C4BC748FA4B73A0CBA778A50A1855E8677FADBAE16E595CD4E","PreviousTxnLgrSeq":11412343}},{"ModifiedNode":{"FinalFields":{"Flags":0,"Owner":"rfXK4fN2AAqH7H5Uo94JQwT88qQkv69pqR","RootIndex":"F9F86D42EBA6096BE7FF953C60572E68D430D760CAD4F78BD04F2EE1450EA6B5"},"LedgerEntryType":"DirectoryNode","LedgerIndex":"F9F86D42EBA6096BE7FF953C60572E68D430D760CAD4F78BD04F2EE1450EA6B5"}}],"TransactionIndex":12,"TransactionResult":"tesSUCCESS"},"status":"closed","transaction":{"Account":"rp8rJYTpodf8qbSCHVTNacf8nSW8mRakFw","Fee":"12000","Flags":2147614720,"LastLedgerSequence":11412350,"LimitAmount":{"currency":"TST","issuer":"rfXK4fN2AAqH7H5Uo94JQwT88qQkv69pqR","value":"541"},"Memos":[{"Memo":{"MemoFormat":"7274312E322E312D3234392D67323830353539302D64697274792D6465627567202D2048454144","MemoType":"636C69656E74"}}],"Sequence":53,"SigningPubKey":"023DF3A034F5C7F4FE9F247ECCD7ABAC5DC3F2819F3C62AD9B9D2E9690DBAA84EB","TransactionType":"TrustSet","TxnSignature":"3044022043D7C2F7256819CE61D3F22658A452116A7FC9919B01A07F4C937AD660C976C2022076E3090C3861A9F6FC9758FCA03270213579AF1F0F97D922F9AE46E5C4F46BFB","date":475897740,"hash":"72B496AF54ECD1D6E8B8BA91931BB2A99FD541835B5668F9AA2095BF97BB8352"},"type":"transaction","validated":true};
+
+  it('should parse incoming trust line right', function(done) {
+    var tx = rewriter.processTxn(data.transaction, data.meta, account);
+    expect(tx).to.be.an('object');
+    expect(tx.transaction).to.be.an('object');
+    expect(tx.transaction.type).to.equal('trusted');
+    expect(tx.transaction.currency).to.equal('TST');
+    expect(tx.transaction.counterparty).to.equal('rp8rJYTpodf8qbSCHVTNacf8nSW8mRakFw');
+    expect(tx.effects).to.be.an.instanceof(Array);
+    expect(tx.effects).to.have.length(1);
+    expect(tx.effects[0].type).to.equal('trust_create_remote');
+    expect(tx.effects[0].currency).to.equal('TST');
+    expect(tx.effects[0].noRipple).to.be.true;
+    assert.equal(tx.effects[0].limit.to_number(), 0);
+    assert.equal(tx.effects[0].limit_peer.to_number(), 541);
+
+    done();
+  });
+});