A trust has the following net income.Franked dividends - $10,000Franking Credits - $3500Capital gain - no discount applies - $70,000Rental income - $105,000Rental deductions - $35,000Beneficiary X is specifically entitled to franked dividends and credits and Beneficiary Y isspecifically entitled to the Capital Gain. The trust income under The Division 6 trust incomewill beand the Division 6E trust income will be

Here's a detailed explanation of how the Division 6 trust income and Division 6E trust income were…

Answered: A trust has the following net income.…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 23P

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Use the following information to complete the chart below, indicating the Calvet Trust's entity accounting income for each of the alternatives. Interest income, taxable $300,000 Interest income, tax-exempt 30,000 Interest income, tax-exempt but AMT preference item 20,000 Long-term capital gain 40,000 Trustee fee 10,000 Trust Agreement Provisions Trust AccountingIncome Fees and capital gains allocable to corpus Capital gains allocable to corpus, one-half of fees allocable to income Capital gains allocable to income, silent concerning allocation of fees Fees and exempt income allocable to corpus, silent concerning allocationof capital gain/loss
A trust has $7000 in interest income, $5000 in tax exempt interest income, $4000 in dividend income and $3000 in capital gains. The trust only expense was $2000 in fiduciary fees. What is the allocation of fiduciary fees to principle an income?
The XYZ Trust has two income beneficiaries. The trust can distribute any amount of accounting income to the beneficiaries and corpus. Taxable interest income 40,000 Tax-exempt income interest income 20,000 Long-term capital gains-allocable to corpus 80,000 Legal and accounting fees-allocable to corpus 9,000 Money distributed to Beneficiary A 13,000 Money distributed to Beneficiary B 26,000 Determine the following: Trust Accounting Income________________________ Taxable Income________________________________ Distributable Net Income (DNI)____________________
The XYZ Trust has two income beneficiaries. The trust can distribute any amount of accounting income to the beneficiaries and corpus. Taxable interest income 40,000 Tax-exempt income interest income 20,000 Long-term capital gains-allocable to corpus 80,000 Legal and accounting fees-allocable to corpus 9,000 Money distributed to Beneficiary A 13,000 Money distributed to Beneficiary B 26,000 Determine the following: Distribution Deduction___________________________ Trust Taxable Income____________________________ Beneficiary A Taxable Income______________________ Beneficiary B Taxable Income______________________
A simple trust has the following receipts and expenditures for the current year. The trust instrument is silent with respect to the capital gains, and state law concerning trust accounting income follows the Uniform Act. Assume the trustee’s fee is charged equally to principal and income. Corporate bond interest $40,000 Tax-exempt interest 9,000 Long-term capital gain 5,000 Trustee’s fee 2,000 Distribution to beneficiary 48,000 What is the trust’s taxable income? What is the trust’s tax liability?
A trust has $7000in interest income. $5000 in tax exempt interest income. $4000 in dividend income and $3000 in capital gains. The trust only expense was $2000 in fiduciary fees. What is the allocation of fiduciary fees to principal income? 1. $0 allocable to principal; $2000 allocable to income 2. $400 allocable to principal; $1600 allocable to income 3. $1600 allocable to principal; $400 allocable to income 4. $2000 allocable to principal; $0 allocable to income
The benefit of an IDIT over a GRAT is: 1. The full value of the remainder interest is a transfer subject to gift tax 2. Most of the grantor's assets are sold to the trust at fair market value, freezing their value to the uncollected balance of the promissory note on the grantor's death. 3. The trust is taxed on the income from trust property at steeply progressive trust income tax rates. 4. An IDIT is a relatively new estate planning tool and thus should be relied upon by taxpayers and practitioners alike. 2 3
Distributed income of the trust to beneficiaries is considered as a. Taxable b. Allowable Deduction c. Tax Deductible
Compute taxable income of a charitable trust for the A.Y 2023-24 under the following cases: Particulars Income other than voluntary contribution Voluntary contribution Voluntary contribution in the corpus of the trust Income applied for the purpose for which trust is created Case 1 4,00,000 1,00,000 2,00,000 4,50,000 Case 2 5,00,000 80,000 1,50,000 4,93,000 Case 3 15,00,000 2,00,000 5,00,000 2,00,000
A trust has the following results for the current year: Capital gains $100,000 Capital losses $20,000 The trust has available net capital losses of $35,000 incurred in the previous year. Determine the maximum amount that can be allocated to a beneficiary.
Which constitutes a taxable item of gross income? * Compensation for personal injuries O Gain from sale of shares in mutual fund: O Gain from sale of government bonds O Income exempt under treaty
Statement 1: The value of property acquired by gift, bequest, devise, or descent, as well as the income from such property, shall be excluded from the gross taxable income of the recipient. Statement 2: Gains realized from the sale or exchange or retirement of bonds, debentures, or other certificates of indebtedness with a maturity of at least 5 years, shall not be taxable to the investor-seller. a. Statement 1 is trueb. Statement 2 is truec. Both Statements are falsed. Both statements are true

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