The Liu Trust is short of cash. It is required to distribute $100,000 to Yang every year, and that payment is due in six weeks. In its asset corpus, Liu holds a number of investments that are valued at $100,000. One of them is a plot of land with a tax basis to the trust of $80,000. Assuming that the trust agreement allows, what are the Federal income tax consequences if Liu distributes this land to Yang? If an amount is zero, enter "0". Without a § 643(e) election: DNI and distribution deduction is $. Gross income to Liu is $. Basis to Yang is $. With a § 643(e) election: DNI and distribution deduction is $. Gross income to Liu is $. Basis to Yang is $.
The Liu Trust is short of cash. It is required to distribute $100,000 to Yang every year, and that payment is due in six weeks. In its asset corpus, Liu holds a number of investments that are valued at $100,000. One of them is a plot of land with a tax basis to the trust of $80,000. Assuming that the trust agreement allows, what are the Federal income tax consequences if Liu distributes this land to Yang? If an amount is zero, enter "0". Without a § 643(e) election: DNI and distribution deduction is $. Gross income to Liu is $. Basis to Yang is $. With a § 643(e) election: DNI and distribution deduction is $. Gross income to Liu is $. Basis to Yang is $.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Liu Trust is short of cash. It is required to distribute $100,000 to Yang every year, and that payment is due in six weeks. In its asset corpus, Liu holds a number of investments that are valued at $100,000. One of them is a plot of land with a tax basis to the trust of $80,000. Assuming that the trust agreement allows, what are the Federal income tax consequences if Liu distributes this land to Yang?
If an amount is zero, enter "0".
Without a § 643(e) election:
DNI and distribution deduction is $.
Gross income to Liu is $.
Basis to Yang is $.
With a § 643(e) election:
DNI and distribution deduction is $.
Gross income to Liu is $.
Basis to Yang is $.
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