Ludlow Corp is an active business run by Jane and Jack who are married. The couple...
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Ludlow Corp is an active business run by Jane and Jack who are married. The couple actively works in the business each day. The corporation is not considered a professional corporation, generates 80% of its gross business income from providing services, and has no related business. Jane has controlling interest of the business. Jane, Jack and their 13-year old daughter, Ella and 26 year old son, Edward are Canadian residents. Using the family trust, a dividend is paid to Ella and Edward. Edward own 15% of the fair market value of the outstanding ghares of the corporation. Neither Ella or Edward have worked in the company. Required Determine if the dividends received by Ella and Edward are split income Ludlow Corp is an active business run by Jane and Jack who are married. The couple actively works in the business each day. The corporation is not considered a professional corporation, generates 80% of its gross business income from providing services, and has no related business. Jane has controlling interest of the business. Jane, Jack and their 13-year old daughter, Ella and 26 year old son, Edward are Canadian residents. Using the family trust, a dividend is paid to Ella and Edward. Edward own 15% of the fair market value of the outstanding ghares of the corporation. Neither Ella or Edward have worked in the company. Required Determine if the dividends received by Ella and Edward are split income
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The dividends received by Ella and Edward from the family trust may be consi... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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