Question
The Jackson Family trust Net Income is presented below for the 2022 tax year. Description $ GST $ Assessable Income Business income (received) 660,000 60,000
The Jackson Family trust Net Income is presented below for the 2022 tax year.
Description $ GST $
Assessable Income
Business income (received) 660,000 60,000 600,000
Business Income (invoiced) 22,000 2,000 20,000
Interest income 20,000 n/a 20,000
Capital gain 30,000*
Fully franked dividend 3000 n/a 3,000
Gross up 1286
Total assessable income 674,286
Allowable Deductions
Operating costs 396,000 36,000 360,000
Oven decline in value 11,473 1,043 1,728
Other goods 8,800 800 8,000
Tax agent fees 770 70 700
Total allowable deductions 370,428
Net Income of the Trust 303, 858
* Assume that the Trust was entitled to the Div 115 discount and all beneficiaries are Australian resident taxpayers.
Required:
Assume that Rohan Jackson the trustee makes Ethan Jackson presently entitled to 20% of the trust income. Calculate Ethan’s share of the trust income; Ethan is 22 years old.
Assume that Rohan Jackson the trustee makes Jackson Co Pty Ltd presently entitled to 30% of the trust income. Calculate Jackson Co Pty Ltd share of the trust income.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
