The Trustee of the Miguel Trust Can Distribute Any Amount $\$ 40,000$

question 15

Essay

The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George. This year, the trust incurred the following: Tax able interest income $\$ 40,000$ $\begin{array}{lc}\text { Tax-exempt interest income } & 20,000 \\\text { Long-term capital gains-allocable to corpus } & 10,000 \\\text { Fiduciary's fees-allocable to corpus } & 6,000\end{array}$ The trustee distributed $40,000 to Paula and $40,000 to George.
a. What is Miguel's trust accounting income?
b. What is Miguel's DNI?
c. What is Miguel's taxable income?
d. How much gross income is recognized by each of the beneficiaries?

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Definitions:

Presumptive Death

Presumptive death refers to the legal declaration of an individual's death in the absence of a body or direct evidence of death, often after a prolonged disappearance.

Brain Death

A medical condition defined as the complete and irreversible loss of brain function, including in the brainstem.

Electrical Brain Waves

Electrical patterns in the brain that are detectable with an EEG and are indicative of different states of consciousness.

Cessation

The act of stopping or ending something, such as a habit, action, or process.