The Rosy Discretionary Trust has a property investment portfolio. During the 2019 income year, the Trustee recorded
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Question:
The Rosy Discretionary Trust has a property investment portfolio. During the 2019 income year, the Trustee recorded a net trust income of $168,000. All of the income is derived from Australian property investments. The trustee resolved to distribute the net income of the trust as follows:
Rosy (aged 28) | 30% |
Indiana (Rosy's sister aged 16) | 10% |
Sarah (Rosy's sister aged 16, working full time at Coles since January) | 10% |
RPM Pty Ltd (Australian resident company - 100% owned by Rosy) | 10% |
The Robe Soccer Club (non-profit, tax exempt community organisation) | 5% |
Ben (aged 29) - Rosy's Friend who is a bankrupt | 10% |
There was one discretionary distribution made:
- $10,000 was paid towards Indiana's school fees.
The balance was undistributed.
REQUIRED:
- a. Complete a Distribution schedule.
- b. Calculate the tax payable by the trustee.
Related Book For
Ethics in Accounting A Decision Making Approach
ISBN: 978-1118928332
1st edition
Authors: Gordon Klein
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