Several years ago, Ms. Laura established an inter vivos trust for her daughter, who is now...
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Several years ago, Ms. Laura established an inter vivos trust for her daughter, who is now 28 years old. The terms of the trust provided that the trustees had complete discretion to distribute any portion of the annual income of the trust to the beneficiary. The following income was earned in the trust for its taxation year ended December 31, 2022. Interest Actual dividends from Canadian-resident public Capital gains Rental income (after deduction of $3,700 in CCA Total 19.000 22,000 10.000 5,300 56.300 In 2022, 60% of each type of income was paid to the beneficiary, and the other 40% was retained by the trust. The daughter had no other source of income in 2022 and has used all of her capital gains exemption. She will pay federal income tax at the rate of 15% on taxable income of up to $50,197. Shee paid tuition fees of $5,000 in the year for eight months of full-time attendance at university. Required: Compute the taxable income and basic federal tax payable of the trust and the daughter in respect of 2022. Several years ago, Ms. Laura established an inter vivos trust for her daughter, who is now 28 years old. The terms of the trust provided that the trustees had complete discretion to distribute any portion of the annual income of the trust to the beneficiary. The following income was earned in the trust for its taxation year ended December 31, 2022. Interest Actual dividends from Canadian-resident public Capital gains Rental income (after deduction of $3,700 in CCA Total 19.000 22,000 10.000 5,300 56.300 In 2022, 60% of each type of income was paid to the beneficiary, and the other 40% was retained by the trust. The daughter had no other source of income in 2022 and has used all of her capital gains exemption. She will pay federal income tax at the rate of 15% on taxable income of up to $50,197. Shee paid tuition fees of $5,000 in the year for eight months of full-time attendance at university. Required: Compute the taxable income and basic federal tax payable of the trust and the daughter in respect of 2022.
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Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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