In 2020, Devon Jenkins transferred to a family trust, for no consideration, publicly traded stocks that paid eligible dividends of $72,900 to the trust during the year ending December 31, 2020. The beneficiaries of the trust are Devon's spouse, Connie, and their two children, Marvin (16 years old)and Diane (22 years old). The beneficiaries have no income other than that from the trust. During 2020, the trust income and capital gains are allocated equally, and are payable to each beneficiary during the year. In addition to the dividends, there was a 2020 disposition of shares held by the trust that resulted in a capital gain of $16,200.
Determine the Taxable Income of each beneficiary and calculate any effect the trust income will have on the Taxable Income of Devon. Ignore the possibility that some of the income received by the beneficiaries will be subject to the TOSI.

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The Answer of In 2020, Devon Jenkins transferred to a family trust, for no consideration, publicly traded stocks that paid eligible dividends of $72,900 to the trust during the year ending December 31, 2020. The beneficiaries of the trust are Devon's spouse, Connie, and their two children, Marvin (16 years old)and Diane (22 years old). The beneficiaries have no income other than that from the trust. During 2020, the trust income and capital gains are allocated equally, and are payable to each beneficiary during the year. In addition to the dividends, there was a 2020 disposition of shares held by the trust that resulted in a capital gain of $16,200.
Determine the Taxable Income of each beneficiary and calculate any effect the trust income will have on the Taxable Income of Devon. Ignore the possibility that some of the income received by the beneficiaries will be subject to the TOSI.

In 2020, Devon Jenkins Transferred to a Family Trust, for No