The Willis trust instrument provides that Tamara , the sole income beneficiary, is to receive $40,000 annually.
Fantastic news! We've Found the answer you've been seeking!
Question:
The Willis trust instrument provides that Tamara , the sole income beneficiary, is to receive $40,000 annually. If the trust accounting income is not sufficient to pay this amount, the trustee is empowered to invade corpus to the extent necessary. During the current year, the trust has distributable net income DNI of $100,000, including $30,000 of tax-exempt interest. In accordance with the trust instrument, $40,000 is paid to Tamara . How much income is taxable to Tamara for the current year?
a. $150,000
b. $16,000
c. $80,000
d. None of the above
e. $64,000
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date: