An entity reports the following transactions for the 2021 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $665,000 39,900 Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds 5,320,000 Trustee fees, deductible portion (19,950) Net rental losses, passive activity (133,000)
An entity reports the following transactions for the 2021 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $665,000 39,900 Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds 5,320,000 Trustee fees, deductible portion (19,950) Net rental losses, passive activity (133,000)
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 19P
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Transcribed Image Text:An entity reports the following transactions for the 2021 tax year. The trustee accumulates all accounting income for
the
year.
Operating income from a business
$665,000
39,900
Dividend income, all from U.S. corporations
(20% tax rate)
Interest income, City of San Antonio bonds
5,320,000
Trustee fees, deductible portion
(19,950)
Net rental losses, passive activity
(133,000)
Income Tax Rates-Estates and Trusts
Tax Year 2021
Taxable Income
The Tax Is:
Of the
But not
Amount
Over-
Over-
Over-
$
0
$ 2,650
10%
$
0
2,650
9,550
$ 265.00 +24%
2,650
9,550
13,050
1,921.00 + 35%
9,550
13,050
3,146.00 + 37%
13,050
Income Tax Rates-C Corporations,
2018 and after
For all income levels, the tax rate is 21%.
Question: The Federal income tax liability for the Valerio Trust is
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