Unformatted text preview: Problem C:14-39 A. What is the deductible portion of the trustee's fees? 1350 B. What is the trust's taxable income exclusive of the distribution deduction? Diviends 15,000.00 Rental Income 6,000.00 Minus Trustee's Fees (1,350.00) Property Taxes (1,000.00) Personal Exemption (300.00) Taxable Income 18,350.00 C. What is the trust's DNI? Taxable Income 18,350.00 Personal Exemption 300.00 Tax-exempt Income 6,550.00 DNI 25,200.00 D. What is the trust's taxable income using the formula approach of Figure C:14-1? Dividends 15,000.00 Rental income 6,000.00 Minus: Property Taxes (1,000.00) Trustee's Fees (1,350.00) Distribution Deduction (18,650.00) Personal Exemmption (300.00) Taxable Income (300.00)...
View Full Document
- Spring '10
- Dividends, Taxation in the United States