Bart Smith settled the Smith Children’s Trust on September 30, 2012 (EIN: 45-1792583). In
2016, the Trust had items of income and expense as follows: Qualified Dividends
Ordinary Dividends
Rental income from house
Charitable Gift to Salvation Army
Tax-exempt interest
Rental expenses1
Trustee’s fee
Fee for preparation of tax return
Capital gain on sale of stock2
Distribution of income:
Frank
Sally Amount Allocable to
Income
Principal
$23,149
3,319
21,250
10,000
18,000
3,575
850
$ 850
725
18,173
17,150
12,200 The trust agreement appointed Smalls Bank and Trust as its trustee with broad discretionary
authority, including the Trustee’s authority to distribute income to Frank and Sally during its
20-year term. The trustee has decided to allocate a portion of the estimated taxes to the
beneficiaries this year. On July 1, 2032, the Trust will terminate and the assets will be
distributed equally to Frank and Sally, irrespective of any distributions the beneficiaries
received during the life of the Trust (i.e. separate shares are not maintained for Frank and
Sally). The Trustee has never allocated any estimated tax payments to the beneficiaries and
the Trust provides that capital gains are to be treated as “principal” by the Trustee.
Smalls Bank and Trust
189 24th St.
Port Huron, MI 48007
EIN: 38-1212853 Frank Smith
5241 Union
Portsville, MI 48018
SS: 287-49-1715 Sally Smith
7152 Forest
Livonia, MI 48054
SS: 287-48-2372 Please prepare the 2016 Form 1041 and any other form or schedule required for the Smith
Children’s Trust. This Return will be due on or before class June 15, 2017. 1 The residential rental property is located at: 473 Greenfield Avenue, Birmingham, Michigan
48009. The expenses include: $750 commission paid to real estate management company for
managing rental property, $1,800 for depreciation of the property, $1,025 for maintenance
expenses.
2
Trustee sold Corporate Stock on April 3, 2016. The stock was purchased for $4,117 on January
21, 2003. The Trustee filed a form 1099-B reflecting the basis of the Corporate Stock.

• 1497924941-Tax Homework.doc

SuperTutor

(15)

Status NEW Posted 20 Jun 2017 02:06 AM My Price 10.00

-----------

Attachments

file 1497924943-Solutions file.docx preview (56 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------on�-----------�th-----------is -----------web-----------sit-----------e. ----------- H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;----------- -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer