In the current year, the Mixon Family Trust had the following income and expense items:
Rental income 104,000, dividends from equity stocks 15,890, tax exempt interest income 23,400, long term capital gains from stocks 43,100 rental operating expenses 33,443 and trustee fees 12,000. Under the trust agreement - all capital gains and 50% of trustee fees are allocated to the principal account. The trustee has to maintain reserve for depreciation equal to tax depreciation deduction for current year of $9,650. The trustee must distribute 20,000 of trust income annually to Janey Mixon and has the discretion to distribute additional amounts of income or corpus to Janey, Jonathan, or Mark Mixon. During the year, the trustee distributed 30,000 to each of the three named beneficiaries.
Calculate amount and character of income distributed to each trust beneficiary for the current year.
answer:-calculated the answer amount and charter of income distrubted to each trust
give =Rental income-10400
Divident for equity stock -15800
exampt intrest income 23400
capital gain for stock 43100
operating exp-33443
truste fee-12000
principal account fee-all capital gain and 50%of capital recipt
depriciation reserve $9650
Calculated the Distrubted income
PARTICULAR | AMOUNT IN $ |
RENTEL INCOME | 10400 |
DIVIDENT FOR EQUITY STOCK | 15800 |
EXAMPT INTREST INCOME | 23400 |
CAPITAL GAIN | 43100 |
OPERATING EXP | 33443 |
TRUSTED FEE | 12000 |
DEPRICUTION RESERVE | 9650 |
NET TOTAL INCOME | 147793 |
LESS :-ALL CAPITAL GAIN | 43100 |
LESS:-50% OF TRUSTY FEE | 6000 |
LESS:-DEPRICIATION | 9650 |
NET TOTAL INCOME DISTRUBTED | 89043 |
TOTAL NO OF PERSON 3 PERSON | 3 |
SHARE PER PERSON | 29681 |
In the current year, the Mixon Family Trust had the following income and expense items: Rental...
In the current year, the Mixon Family Trust had the following income and expense items: Rental income 104,000, dividends from equity stocks 15,890, tax exempt interest income 23,400, long term capital gains from stocks 43,100 rental operating expenses 33,443 and trustee fees 12,000. Under the trust agreement - all capital gains and 50% of trustee fees are allocated to the principal account. The trustee has to maintain reserve for depreciation equal to tax depreciation deduction for current year of $9,650....
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