diff --git a/src/js/entry/web.js b/src/js/entry/web.js
index a22656dd8..44dd1b2ed 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');
@@ -136,6 +137,8 @@ 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 1709dc0c1..aa325324b 100644
--- a/src/js/util/jsonrewriter.js
+++ b/src/js/util/jsonrewriter.js
@@ -397,20 +397,17 @@ 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' ? (viewHigh ? 'HighNoRipple' : 'LowNoRipple') :
+                                                            (viewHigh ? '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..d436af8e7
--- /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();
+  });
+});