The Weryk family trust is an inter vivos trust with one beneficiary. The beneficiary is 25 year old Marcin Weryk, the son of the settlor. During 2020, the trust received eligible dividends of $50,000 from publicly traded Canadian corporations. In addition, the trust received $200,000 in non-eligible dividends from a family owned Canadian controlled private corporation. Marcin is actively engaged in the private corporation on regular and continuous basis and, as a consequence, the TOSI is not applicable to the income that he receives from the trust.
The trust sold shares in a public company, resulting in a capital gain of $30,000. Seventy-five percent of both the trust's current year income and capital gains was distributed to Marcin.
Determine the effect of these transactions on the Net Income For Tax Purposes for both the trust and for Marcin.

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The Answer of The Weryk family trust is an inter vivos trust with one beneficiary. The beneficiary is 25 year old Marcin Weryk, the son of the settlor. During 2020, the trust received eligible dividends of $50,000 from publicly traded Canadian corporations. In addition, the trust received $200,000 in non-eligible dividends from a family owned Canadian controlled private corporation. Marcin is actively engaged in the private corporation on regular and continuous basis and, as a consequence, the TOSI is not applicable to the income that he receives from the trust.
The trust sold shares in a public company, resulting in a capital gain of $30,000. Seventy-five percent of both the trust's current year income and capital gains was distributed to Marcin.
Determine the effect of these transactions on the Net Income For Tax Purposes for both the trust and for Marcin.

The Weryk Family Trust Is an Inter Vivos Trust with One