Upon his death three years ago, Mr. Tajima's will provided for the creation of a trust with his four children as beneficiaries. During 2020, the trust's income consisted of interest received from Canadian sources of $20,000. For 2020, the trustees jointly agreed that all income received by the trust, except for the following two amounts would be paid to the beneficiaries. In addition, the trust designated the share of one beneficiary to be not paid, even though the beneficiary received the payment. The amount was $5,000. What is the Net Income For Tax Purposes of the trust?

Question

Upon his death three years ago, Mr. Tajima's will provided for the creation of a trust with his four children as beneficiaries. During 2020, the trust's income consisted of interest received from Canadian sources of $20,000. For 2020, the trustees jointly agreed that all income received by the trust, except for the following two amounts would be paid to the beneficiaries.  In addition, the trust designated the share of one beneficiary to be not paid, even though the beneficiary received the payment. The amount was $5,000. What is the Net Income For Tax Purposes of the trust?

Quizplus · Accepted Answer

The Answer of Upon his death three years ago, Mr. Tajima's will provided for the creation of a trust with his four children as beneficiaries. During 2020, the trust's income consisted of interest received from Canadian sources of $20,000. For 2020, the trustees jointly agreed that all income received by the trust, except for the following two amounts would be paid to the beneficiaries.  In addition, the trust designated the share of one beneficiary to be not paid, even though the beneficiary received the payment. The amount was $5,000. What is the Net Income For Tax Purposes of the trust?

Upon His Death Three Years Ago, Mr