tax 2020 Dividend income, all qualified U.S. stocks $10,000 Taxable interest income 50,000 Tax-exempt interest income 20,000
Question:
tax 2020
Dividend income, all qualified U.S. stocks | $10,000 |
Taxable interest income | 50,000 |
Tax-exempt interest income | 20,000 |
Net long-term capital gain, incurred 11/1 | 25,000 |
Trustee's fees | 6,000 |
Under the terms of the trust instrument, cost recovery, net capital gains and losses, and fiduciary fees are allocable to corpus. The trustee is required to distribute $25,000 to Marcus every year. For the year, the trustee distributed $40,000 to Marcus and $40,000 to Marcus's sister, Ellen Hayes. No other distributions were made.
In computing DNI, the trustee properly assigned all of the deductible fiduciary's fees to the taxable interest income.
The trustee paid $4,000 in estimated taxes for the year on behalf of the trust. Any resulting refund is to be credited to the next tax year. The exempt income was not derived from private activity bonds.
The trust was created on December 14, 1953. It is not subject to any recapture taxes, nor can it claim any tax credits. None of its income was derived under a personal services contract. The trust has no economic interest in any foreign trust. Its Federal identification number is 11-1111122.
Round to any division to six decimal places. Round your intermediate computations and final answers to the nearest dollar. Enter all amounts as positive numbers.
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STEP 5: Allocate DNI
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South-Western Federal Taxation 2022 Corporations, Partnerships, Estates And Trusts
ISBN: 9780357519240
45th Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman