Note: This problem is for the 2020 tax year.
Dividend income, all qualified U.S. stocks $10,000
Taxable interest income 50,000
Tax-exempt interest income 20,000
Net long-term capital gain, incurred 11/1 25,000
Trustee's fees 6,000
Under the terms of the trust instrument, cost recovery, net
capital gains and losses, and fiduciary fees are allocable to
corpus. The trustee is required to distribute $25,000 to Marcus
every year. For the year, the trustee distributed $40,000 to Marcus
and $40,000 to Marcus's sister, Ellen Hayes. No other distributions
were made.
- Note This Problem Is For The 2020 Tax Year Dividend Income All Qualified U S Stocks 10 000 Taxable Interest Income 1 (94.2 KiB) Viewed 57 times
Part I - Tax Computation 1 Tax: a Tax on taxable income. See instructions. 1a 1b b Tax on lump-sum distributions. Attach Form 4972... c Alternative minimum tax (from Schedule I (Form 1041), line 54) 1c d Total. Add lines 1a through 1c.... Foreign tax credit. Attach Form 1116 2a b General business credit. Attach Form 3800.. 2b 2c c Credit for prior year minimum tax. Attach Form 8801 d Bond credits. Attach Form 8912. 2d e Total credits. Add lines 2a through 2d. 3 Subtract line 2e from line 1d. If zero or less, enter -0- 4 Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions 5 Net investment income tax from Form 8960, line 21 .. 6 Recapture taxes. Check if from: Form 4255 Form 8611 7 Household employment taxes. Attach Schedule H (Form 1040) 8 Other taxes and amounts due ... 9 Total tax. Add lines 3 through 8. Enter here and on page 1, line 24.. 2a 5,769 X 0 1d 2e 3 4 5 6 7 8 9 5,769 X 0 ✓ 5,769 X 454 ✓ 6,223 X