A trust has the following net income.Franked dividends - $10,000Franking Credits - $3500Capital gain - no discount applies - $70,000Rental income - $105,000Rental deductions - $35,000Beneficiary X is specifically entitled to franked dividends and credits and Beneficiary Y isspecifically entitled to the Capital Gain. The trust income under The Division 6 trust incomewill beand the Division 6E trust income will be

Here's a detailed explanation of how the Division 6 trust income and Division 6E trust income were…

Answered: A trust has the following net income.…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 23P

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The benefit of an IDIT over a GRAT is: 1. The full value of the remainder interest is a transfer subject to gift tax 2. Most of the grantor's assets are sold to the trust at fair market value, freezing their value to the uncollected balance of the promissory note on the grantor's death. 3. The trust is taxed on the income from trust property at steeply progressive trust income tax rates. 4. An IDIT is a relatively new estate planning tool and thus should be relied upon by taxpayers and practitioners alike. 2 3
A trust has $7000 in interest income, $5000 in tax exempt interest income, $4000 in dividend income and $3000 in capital gains. The trust only expense was $2000 in fiduciary fees. What is the allocation of fiduciary fees to principle an income?
A trust has $7000in interest income. $5000 in tax exempt interest income. $4000 in dividend income and $3000 in capital gains. The trust only expense was $2000 in fiduciary fees. What is the allocation of fiduciary fees to principal income? 1. $0 allocable to principal; $2000 allocable to income 2. $400 allocable to principal; $1600 allocable to income 3. $1600 allocable to principal; $400 allocable to income 4. $2000 allocable to principal; $0 allocable to income
Compute taxable income of a charitable trust for the A.Y 2023-24 under the following cases: Particulars Income other than voluntary contribution Voluntary contribution Voluntary contribution in the corpus of the trust Income applied for the purpose for which trust is created Case 1 4,00,000 1,00,000 2,00,000 4,50,000 Case 2 5,00,000 80,000 1,50,000 4,93,000 Case 3 15,00,000 2,00,000 5,00,000 2,00,000
Distributed income of the trust to beneficiaries is considered as a. Taxable b. Allowable Deduction c. Tax Deductible
a. What is the difference between distributing property per capita and per stirpes? When would a per stirpes distribution be required? what are two ways in which the duties of an administrator differ from those of an executor? Must the grantor, trustee, and beneficiary of a trust all be different people? What formalities must be followed to create a testamentary trust?
Which constitutes a taxable item of gross income? * Compensation for personal injuries O Gain from sale of shares in mutual fund: O Gain from sale of government bonds O Income exempt under treaty
Which trust fund has assets always equal to liabilities with never a fund balance. O a. Pension trust funds O b. debt service trust funds Oc. Investment trust funds O d. special revenue trust funds Oe. Private purpose trust funds Of. Agency trust funds O g. capital projects trust funds Oh. Internal service trust funds
Which of the following is usually not accounted for as an adjustment to a trust's income? Multiple Choice Lease cancellation fees. Rent expense. Investment costs and commissions. Insurance expense. Property taxes.
180. Which of the following is a required financial statement for an investment trust fund? a. Statement of revenues, expenditures, and changes in fiduciary net assets. b. Statement of activities. c. Statement of revenues, expenses, and changes in fiduciary net assets. d. Statement of changes in fiduciary net assets.
Which of the following are correct statements about the nontax characteristics of a charitable lead trust? The income stream must be paid for the lifetime of the beneficiary. The grantor of the trust receives a charitable income tax deduction in the year the trust is funded. The trust must distribute the remainder interest in the corpus to a noncharitable beneficiary. The trust must distribute the remainder interest in the corpus to a charitable beneficiary. A) I and IV B) I and II C) II and III D) II and IV
180. Which of the following is a required financial statement for an investment trust fund? a. Statement of revenues, expenditures, and changes in fiduciary net assets. b. Statement of activities. c. Statement of revenues, expenses, and changes in fiduciary net assets. d. Statement of changes in fiduciary net assets. 181. Assuming no outstanding encumbrances at year end, closing entries for which of the following situa- tions would increase the unreserved fund balance at year end? a. Actual revenues were less than estimated revenues. b. Estimated revenues exceed actual appropriations. c. Actual expenditures exceed appropriations. d. Appropriations exceed actual expenditures.

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