The Bellow Trust has the following activities during Year 2. Dividend Income $100,000 Tax-Exempt Interest Income $15,000
Question:
The Bellow Trust has the following activities during Year 2.
Dividend Income | $100,000 |
Tax-Exempt Interest Income | $15,000 |
Recognized Long-Term Capital Gain, allocated by trust agreement to income beneficiaries | $25,000 |
Fiduciary’s Fees | $10,000 |
Contribution to Mt. Olive Church, paid on 08-30-Year 3 from Year 2 trust accounting income, as authorized by the trust agreement | $20,000 |
Deduction for Discretionary beneficiary distribution (assumed) | 98,214 |
The trustee could, at her discretion, distribute any amount of the Bellow Trust income or corpus during the term of the trust. Compute Bellow’s taxable income. Please show your work in detail.
Exemptions for Simple trust $300, Complex trust $100
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold