The sole income receipt for 2020 of an inter vivos trust is $35,500 in non-eligible dividends received from a private Canadian corporation. The only beneficiary of the trust is the adult son of the settlor whose sole income for the year is dividends received from the trust. The son is actively engaged in the private corporation on regular and continuous basis. He has no personal tax credits other than the basic personal tax credit and any credits related to his trust income.
Calculate the Taxable Income and federal Tax Payable for 2020 for both the trust and for the beneficiary assuming:
A. The beneficiary was paid $24,500 of the dividend income.
B. The beneficiary was paid all of the dividend income.

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The Answer of The sole income receipt for 2020 of an inter vivos trust is $35,500 in non-eligible dividends received from a private Canadian corporation. The only beneficiary of the trust is the adult son of the settlor whose sole income for the year is dividends received from the trust. The son is actively engaged in the private corporation on regular and continuous basis. He has no personal tax credits other than the basic personal tax credit and any credits related to his trust income.
Calculate the Taxable Income and federal Tax Payable for 2020 for both the trust and for the beneficiary assuming:
A. The beneficiary was paid $24,500 of the dividend income.
B. The beneficiary was paid all of the dividend income.

The Sole Income Receipt for 2020 of an Inter Vivos