Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 12 marks In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of

image text in transcribed
Question 5 12 marks In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount) Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings. Question 5 12 marks In the 2019-20 income tax year, the Geller family discretionary trust had a total taxable income of $150,000 which consisted of $140,000 rental income and $10,000 capital gains (after applying 50% CGT discount) Monica Geller, the trustee, is seeking your advice on how to exercise his discretion to distribute the trust income among the following beneficiaries (all are Australian tax residents): Angus Geller - who is 15 year-old high school student and has no other income. Brett Geller - who is 25 years old and earns $8,000 in other income. Cristina Geller - who is 40 years old and earns $80,000 salary income, and has a carried forward capital loss of $10,000. Donald Geller - who is 70 years old and earns $60,000 from a complying superannuation fund (a private super fund). Required: Ignoring all other potential factors and issues, discuss in the following table what would be the best distribution allocation to minimise the overall tax paid on trust income for 2019-20 income tax year. Show all workings

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_2

Step: 3

blur-text-image_3

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

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis Gapenski PhD

3rd Edition

1567932320, 978-1567932324

More Books

Students also viewed these Finance questions

Question

Find out how many employees are managed by James Adams.

Answered: 1 week ago

Question

Using the fundamental theorem of game theory, prove that P* MQ* = v

Answered: 1 week ago

Question

1 What is meant by systematic training?

Answered: 1 week ago