ISH Tax Drill - Irrevocable Trust Anton creates an irrevocable trust for his children with a transfer of income-producing property and an insurance policy on the life of Celine, his wife. During the year, the trustee uses $4,800 of the trust income to pay the premiums on the policy covering Celine's life. taxed on $4,800 of the trust's income. Anton is Celine is The children are The trust is Tax Drill - Charitable Contribution Deduction The Hosta Trust reports 2018 gross rent income of $72,000, expenses attributable to the rents of $55,000, and tax-exempt interest from state bonds of $18,000. Under the trust agreement, the trustee is to pay 20% of the annual trust accounting income to the American Red Cross, a qualifying charitable organization. The charitable contribution deduction allowed for 2018 is $