The Windsor Trust (Federal identification number 55‐5555555) was created on September 23, 2009. The beneficiary of the Windsor Trust is Kevin Windsor. His social security number is 123‐45‐6789. Kevin lives at 6767 Ridgeline Road, Birmingham, AL 35212.

The trust and Kevin both use a calendar tax year.

The trustee, Roosevelt Federal Bank, is located at 549 Harbor Boulevard, Gold Hills, AL 35223. Its employer ID number is 98‐7654321.

Under the terms of the trust agreement, the fiduciary’s fees are allocated to income. The trustee must distribute all of the entity’s accounting income to Kevin Windsor by February 15^th of the following year. The trustee followed this charge and made no other distributions during the year. Fiduciary’s fees were properly assigned as an offset to taxable interest income.

There are no tax credits for the year, and none of the entity’s income was derived from a personal services contract. The trust has no economic interest in any foreign trust.

• Compute the 2020 fiduciary income and federal income tax for the Windsor Trust using the Exhibit 20.5 template to make your computations.
• Complete a 2020 Form 1041 for the entity.
• Determine the amount and character of the income and expense items that the beneficiary must report for the year and report them on Schedule K‐1. Omit any alternative minimum tax computations.

2020’s activities of the trust include the following:
Dividend income, all U.S. stocks (assume qualified)	$85,000
Taxable interest income	$18,000
Tax‐exempt interest income	$12,000
Fiduciary’s fees	($ 6,000)

Please show your work as well as the answers.

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