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I have a question about Trust distribution which I could not find an answer on the IRD website.
A trust has an income (make it simple) of $50,000 and a tax which already been paid to IRD of 33% (That is 16,500) - Last year tax rate.
Trust has 3 Beneficiaries (1 over 16 not working and 2 adults both working with PAYE income over $100,000)
Adults have also additional income from other sources (property investment), which results in additional tax to be paid by each adult.
After the Trust distribute funds to the over 16 and not working beneficiary of $48,000 in income and $7420 in tax),
that leaves 50,000 less 48,000 = $2,000 in income to distribute and 16,500 - 7420 = 9080 in tax to distribute.
My question is. Can the trust distribute the additional $2,000 ($1,000 to each adult) with $9,080 / 2 = $4,540 tax)?
Can the income distribution be less than the Tax distribution (Can I say distribute $1 and $9,000 in tax to beneficiaries)
Thanks in advance
A trust has an income (make it simple) of $50,000 and a tax which already been paid to IRD of 33% (That is 16,500) - Last year tax rate.
Trust has 3 Beneficiaries (1 over 16 not working and 2 adults both working with PAYE income over $100,000)
Adults have also additional income from other sources (property investment), which results in additional tax to be paid by each adult.
After the Trust distribute funds to the over 16 and not working beneficiary of $48,000 in income and $7420 in tax),
that leaves 50,000 less 48,000 = $2,000 in income to distribute and 16,500 - 7420 = 9080 in tax to distribute.
My question is. Can the trust distribute the additional $2,000 ($1,000 to each adult) with $9,080 / 2 = $4,540 tax)?
Can the income distribution be less than the Tax distribution (Can I say distribute $1 and $9,000 in tax to beneficiaries)
Thanks in advance