In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount). Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount). Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount). Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount). Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount). Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount). Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
X is a beneficiary in a family discretionary trust (Happy Family Trusts (HPT) that Xs parents established 30 -years ago. The HPT owns three investment properties and two small businesses. Like many...
-
Suppose the Federal Reserve buys $10,000 in bonds and reduces the required reserve ratio from 10% to 5%. What was the change in money supply due to the required reserve ratio reduction? Hint: Compare...
-
The Robinson Family Trust is a discretionary family trust with two resident beneficiaries, Tom and grace. During this income year of 2019-2020, the activities of the trust gave rise to the following:...
-
Is it possible to produce an iron-carbon alloy that has a minimum tensile strength of 690 MPa (100,000 psi) and a minimum ductility of 40%RA? If so, what will be its composition and microstructure...
-
A layer with negligible thickness containing 10.0 nmol of methanol (D = 1.6 10 - 9 m 2 /s) was placed in a tube of water 5.00 cm in diameter and allowed to spread by diffusion. Using Equation 22-25,...
-
How would you characterize IKEA's original strategic posture in foreign markets? What were the strengths of this posture?
-
Table B. 25 contains the golf data on strokes gained. Use all possible regressions to build a model for these data. Perform a residual analysis on the final model and comment on model adequacy. SG:...
-
The standard cost of Product B manufactured by TLC Company includes three units of direct materials at $5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.70...
-
(d) Explain what is meant by the statement that "an option contract on the SPX VIX is a bet only on volatility".
-
Dry Supply is a wholesaler of dry cleaning equipment, cleaning supplies, and laundry soap. This company is located in Kansas, it has been in business for over 50 years. Anne Schippel, is a business...
-
Curtis Bell has just been hired by the Whitewater Inn to be the new front desk manager. Curtis is moving from another town, so the General Manager of the Whitewater Inn is allowing him to stay a few...
-
Aspen Company's non-callable bonds currently sell for $905. They have a 15-year maturity, an annual coupon of $70, and a par value of $1,000. What is their yield to maturity? Your answer should be...
-
Samantha normally requires 1 3 7 0 0 kJ ( about 3 2 7 4 Calories ) of food energy per day. If Samantha consumes 1 4 3 8 5 kJ per day, she will steadily gain weight. How much time must Samantha spend...
-
What are the main role of a businessmen to build the good business relation and communication to make the business better everyday?
-
The current temperature is 12 oC and the dew point is -29 oC. What is the relative humidity in percentage? Answer to one decimal place. The current temperature is 12 oC and the dew point is -29 oC....
-
A 0.810-kg ball has a velocity of 4.16 m/s to the right. Calculate the momentum of the ball in kg m/s. What velocity does a 10.-g bullet need to have in order to have the same momentum as the ball?...
-
At the end of its last fiscal year, Latte Larry's recorded net earnings of $1 million and had 400,000 outstanding shares, when its market price was $12 per share. What is the price-earnings ratio?
-
Show that if A is any m n matrix, then Im A = A and AIn = A.
-
The following additional information is available for the Dr. Ivan and Irene Incisor family. The Incisors own a rental beach house in Hawaii. The beach house was rented for the full year during 2012...
-
Frank Willingham has the following transactions during the year: Sale of office equipment on March 15 that cost $20,000 when purchased on July 1, 2010. Frank has claimed $5,000 in depreciation and...
-
Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the City of McAllen. Maria's Social Security...
-
Determine whether each of the following statements is true or false: Management accountants should be technically proficient, but they dont need strong oral and written communication skills.
-
Determine whether each of the following statements is true or false: Management accountants are now more often looked upon as internal business advisors rather than bean counters recording historical...
-
Determine whether each of the following statements is true or false: The Association of International Certified Professional Accountants (AICPA) issues the Certified Management Accountant (CMA)...
Study smarter with the SolutionInn App