Questions from Federal Taxation

Q: Refer to Problem C:14-39. How would your

Refer to Problem C:14-39. How would your answers change if the trust were a discretionary trust that distributes $12,000 to its beneficiary, Julio? From problem 39: Assume the trustee must pay out all...

Q: The George Grant Trust reports the receipts and expenditures listed below.

The George Grant Trust reports the receipts and expenditures listed below. What are the trust’s deductible expenses? U.S. Treasury interest…………………..$25,000 Rental income………………………………..9,000 Interest f...

Q: A simple trust had a long-term capital loss of $

A simple trust had a long-term capital loss of $10,000 for 2016 and a long-term capital gain of $15,000 for 2017. Its net accounting income and DNI are equal. Explain the tax treatment for the 2016 ca...

Q: Refer to Problem C:14-42. How would your

Refer to Problem C:14-42. How would your answer change if instead the trust were a complex trust that makes no distributions in 2016 and 2017? Assume the trust earns $8,000 of corporate bond interest...

Q: A revocable trust created by Amir realizes $30,000 of

A revocable trust created by Amir realizes $30,000 of rental income and a $5,000 capital loss. It distributes $22,000 to Ali, its beneficiary. How much income is taxed to the trust, the grantor, and t...

Q: Holly funded the Holly Marx Trust in January 2017. The entire

Holly funded the Holly Marx Trust in January 2017. The entire trust income is payable to her adult son, Jack for 20 years. At the end of the twentieth year, the trust assets are to pass to Holly’s hus...

Q: Refer to Problem C:14-45. Explain how your

Refer to Problem C:14-45. Explain how your answers would change for each independent situation indicated below: a. At the end of the trust term, the property passes instead to Holly’s nephew Nathan....

Q: The following items are relevant for the first income tax return for

The following items are relevant for the first income tax return for the Ken Kimble Estate. Mr. Kimble, a cash method of accounting taxpayer, died on July 1, 2017. Dividends……………………………………………………………………...

Q: Julie Brown died on May 27 of the current year. She

Julie Brown died on May 27 of the current year. She was employed before her death at a gross salary of $4,000 per month. Her pay day was the last day of each month, and her employer did not pro rate h...

Q: In the current year, Maddox Trust, a complex trust,

In the current year, Maddox Trust, a complex trust, distributed an asset with a $42,000 adjusted basis and a $75,000 FMV to its sole beneficiary, Marilyn Maddox-Mason. The trustee elected to recognize...