Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with this question 1041 return. I had added this question before too but the solution is not helpful. please help me with

Please help me with this question 1041 return. I had added this question before too but the solution is not helpful. please help me with correct figures with line numbers of 1041, and Schedule D, E and K-1. Please find attached question. Seems to be a complex trust. please help me with correct solution and information.

image text in transcribed WALSH COLLEGE TAX 497/597 WINTER 2017 FIDUCIARY INCOME TAX RETURN PROBLEM Robert Dobbolina settled the Robert Dobbolina Irrevocable Children's Trust on February 9, 1999 (EIN: 33-898989). In 2016, the Trust had items of income and expense as follows: Qualified Dividends Rental income from house Charitable Gift to United Way Tax-exempt interest Rental expenses 1 Trustee's fee Fee for preparation of tax return Capital gain on sale of stock 2 Distribution of income: Jessica Branden Payments of estimated tax Amount Allocable to Income Principal $30,000 18,500 15,000 15,000 3,500 600 $ 600 500 12,000 18,000 9,000 8,600 The trust agreement appointed Mojo Bank and Trust as its trustee with broad discretionary authority, including the Trustee's authority to distribute income to Jessica and Branden during its 20-year term. The trustee has decided to allocate a portion of the estimated taxes to the beneficiaries this year. On February 9, 2019, the Trust will terminate and the assets will be distributed equally to Jessica and Branden, irrespective of any distributions the beneficiaries received during the life of the Trust (i.e. separate shares are not maintained for Jessica and Branden). The Trustee has never allocated any estimated tax payments to the beneficiaries and the Trust provides that capital gains are to be treated as \"principal\" by the Trustee. Mojo Bank and Trust 1234 Money Lane Slim, MI 48007 EIN: 33-959595 Jessica Dobbolina 6986 Shannon Street Rachel, MI 48008 SS: 123-45-6789 Branden Dobbolina 27366 Spike Street Fletch, MI 48009 SS: 987-65-4321 Please prepare the 2016 Form 1041 and any other form or schedule required for the Robert Dobbolina Irrevocable Children's Trust. 1 The residential rental property is located at: 15939 North Park Blvd., North Park, Michigan 48007. The expenses include: $250 commission paid to a real estate management company for managing rental property, $2,000 for depreciation of the property, $1,250 for maintenance expenses. 2 Trustee sold Corporate Stock on May 2, 2016. The stock was purchased for $8,000 on May 2, 2007

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions