Peyton Trust, which is a simple trust, distributed $45,000 to its sole beneficiary, Brooke, in the current
Question:
Peyton Trust, which is a simple trust, distributed $45,000 to its sole beneficiary, Brooke, in the current year. Further, it had the following items of income and expense for the current year.
Interest income from municipal bonds....................................$10,000
Gross income from rental properties.........................................30,000
Operating expenses for the rental properties.............................5,000
Trust fees allocable to the rental properties................................2,000
What is Peyton’s income distribution deduction for the current year?
a. $23,000
b. $33,000
c. $40,000
d. $45,000
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman