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| Teaching Since: | May 2017 |
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| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
15.            Â
The Polozzi Trust will incur the following items in the next tax year, its first year of existence.
|
Interest income |
$ Â 25,000 |
|
Rent income |
100,000 |
|
Cost recovery deductions for the rental  activity |
35,000 |
|
Capital gain income |
40,000 |
|
Fiduciary and tax preparation  fees |
7,000 |
Betty, the grantor of the trust, is working with you on the language in the trust instrument relative to the derivation of annual accounting income for the entity. She will name Shirley as the sole income beneficiary and Benny as the remainder benefi- ciary.
a.     Suggest language to Betty that will maximize the annual income distribution to Shirley.
b.    Suggest language to Betty that will minimize the annual distribution to Shirley and maximize the accumulation on Benny’s behalf.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll