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Yes, this question is in US taxation. Can you please answer it? Income Taxation of Trusts Problems A complex trust has taxable income of $29,900

Yes, this question is in US taxation. Can you please answer it? image text in transcribed

Income Taxation of Trusts Problems A complex trust has taxable income of $29,900 in 2016. The $29,900 includes $5,000 of rental income and $25,000 of taxable interest income, reduced by the $100 personal exemption. The trust makes no distributions during the year. What is the trust's total tax iability? Compare this amount to the amount of tax an unmarried individual filing single would pay on the same amount of rental and interest income (with no other income) and 1. assume the individual claims the standard deduction 2. Diane died on January 15, 2016. Her estate elected a November 30 year end. The executor projects that the estate will receive interest income of $50,000 by November 30, 2016, and will have no other gross income. In addition, it will have no deductions other than the personal exemption. The beneficiary of the state is Dan, a calendar year taxpayer who is projected to have $195,000 of taxable income in 2016, not including any distributions from the estate. Compare the overall tax costs for the estate and Dan if (1) the executor distributes $37,250 to DAN prior to November 30, 2016, and (2) the estate makes no distributions before November 30, 2016. Dan is unmarried and files as a single taxpayer. A simple trust has the following receipts and expenditures for the year. The trust instrument classifies gains, losses, and trustee's fees part of the principal. 3. Dividends Long-term capital gain Trustee's fees Distribution to beneficiary $20,000 15,000 1,500 20,000 What is the trust's taxable income? 4. A simple trust has the following receipts and expenditures for 2016. The trust instrument is silent with respect to the capital gains, and state law concerning trust accounting income follows the Uniform Act. Assume the trustee's fee is charged equally to principal and income. Corporate bond interest Tax-exempt interest Long-term capital gain Trustee's fees Distribution to beneficiary $40,000 9,000 5,000 2.000 48,000 a. What is the trust's taxable Income? b. What is the trust's tax liability

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