Page 18 - P6 Slide Taxation - Lecture Day 2 - Trust
P. 18
Class question
• Mr Button established an inter vivos trust and donated a
rent-producing property of R2 000 000 to the trust.
• The trust earned rental income of R250 000 during the year
of assessment and incurred tax deductible expenses of
R100 000.
• No beneficiary has a vested right to the retained income of
the trust.
• The made the following distributions during the year:
• ◦ R50 000 to Jane, Mr Button's seven year old daughter
• ◦ R60 000 to Harry, Mr Button's twenty year old son.
• Calulate the taxable income of the trust, Mr Button, Jane
and Harry.
18
