Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This question is in UStaxation. I need form 1041 and schedule k1. Everything what i need is written under. Tax Return Problem: Trust Tax Return,

This question is in UStaxation. I need form 1041 and schedule k1. Everything what i need is written under. image text in transcribed

Tax Return Problem: Trust Tax Return, Form 1041 Prepare the 2016 fiduciary income tax return (Form 1041) for the Reed Trust. In addition, determine the amount and character of the income and expense items that each beneficiary must report for 2016 and prepare a Schedule K-1 for Leslie Reed. Omit all alternative minimum tax consequences. The 2016 activities of the trust include the following: Dividend income, U.S. stocks Taxable interest Income Tax-exempt interest income Fiduciary fees $20,000 50,000 10,000 8,000 The trust and Leslie both use the calendar tax year. Under the terms of the trust instrument, fiduciary's fees are allocated to income. The trustee must distribute all of the entity's accounting income to Leslie Reed, by February 15 of the following year. The trustee followed this charge and made no other distributions during the year. Fiduciary's fees properly were assigned as an offset to taxable interest income. The trust was created on July 8, 1996. There are no tax credits for the year, and none of the entity's income was derived from a personal services contract. The trust has no economic interest in any foreign trust. The federal identification number is 88-8888888. The trustee, Rocklin State Bank, is located at 2791 Bluffs Drive, Rocklin, CA 95766. Its employer identification number is 89-1234567. Leslie lives at 4700 College Oak Drive, Sacramento, CA 95841 and her social security number is 987-66-5432

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

Design Of Cost Management Systems The Text Cases And Readings

Authors: Robin Cooper

1st Edition

0132041243, 978-0132041249

More Books

Students also viewed these Accounting questions

Question

2. Do you agree that unions stifle creativity? Why or why not?

Answered: 1 week ago