Urinalysis Hands on Lab Assignment Introduction: The million nephrons in each of your kidneys form urine and which allows the body to get rid of metabolic wastes from blood….
Determine the trust’s Net Income For Tax Purposes and Taxable Income for the current year.
During the current year, the Jordan family trust, an inter vivos trust, has business income of $220,000. Of this amount, $50,000 is retained in the trust with a joint election being made to have this amount taxed in the hands of a beneficiary who qualifies for the disability tax credit. This beneficiary has no other income. The remaining $170,000 is distributed to the other beneficiaries of the trust. At the beginning of the current year, the trust had a business loss carry forward of $35,000. In order to make use of this loss, the trust designates an amount of $35,000 under ITA 104(13.1) as not having been paid during the year. Determine the trust’s Net Income For Tax Purposes and Taxable Income for the current year. Briefly explain why the trust would make the preferred beneficiary election and designate amounts not paid that were paid.