Kgolo family trust a discretionary inter vivos trust, had the following assets .a house purchased at market
Question:
Kgolo family trust a discretionary inter vivos trust, had the following assets
.a house purchased at market valued by the trust.
.a money market accounts at BLAPSA LTD which arose from an R800 000donation by Mr kgolo mugambe(aged 57).
Kgolo family trust earned the following income in the year ended 28 February 2021
. rental income on the house R20 000
. Interest income on the money market account R40 000
The following distributions were made to the beneficiaries (Mr Kgolo mugabes children) on 28 February 2021
. Amy Mugabe (aged 23) R20 000
. Kith Mugabe (aged 17) R 60 000
The remainder of the income was retained in the trust.
Required:
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4.1 Calculate Klogo family trust taxable income for the 2021 year of assessment (10)
4.2 Calculate Klogo family trust tax liability for the 2021 year of assessment (3)
4.3 Calculate the amount of taxable income that will be included in Amy Mugabe's taxable income because of the above transactions .assume Amy Mugabe's had no other interest. (5)
4.4 Calculate the amount of taxable income that will be included in Keith Mugabe's taxable income because of the above transactions .assume Keith Mugabe's had no other interest. (4)
4.5Calculate the amount of taxable income that will be included in Kgolo Mugabe's taxable income because of the above transactions .assume Kgolo Mugabe's had no other interest. (4)
Expert Answer:
41 The taxable income for Klogo family trust for the 2021 year of assessment is R100000 This is ... View the full answer
