Question

The Nick Nolt Trust reports the receipts and expenditures listed below.

U.S. Treasury interest

$24,000

Rental income

4,800

Interest from tax-exempt bonds

7,200

Property taxes on rental property

2,600

CPA's fee for tax return preparation

500

Trustee's fee

2,400

Requirement

What are the​ trust's deductible ​expenses? ​(Assume that all trustee fees are exempt from classification as a miscellaneous itemized deduction. Complete all input fields. If the expense is not deductible enter a​ "0" in the column. Do not round intermediary​ calculations.)

U.S. Treasury interest
Rental income
Interest from tax-exempt bonds
Property taxes on rental property
CPA's fee for tax return preparation
Trustee's fee
Trust's deductible expenses

Answer 1

	Particulars	Amount
	U.S. Treasury interest	24000
Add:-	Rental income	4800
Add:-	Interest from tax-exempt bonds	0
Less:-	Property taxes on rental property	2600
Less:-	CPA's fee for tax return preparation	500
Less:-	Trustee's fee	0
	Trust's deductible expenses	25700

I have explained everything step by step.

Go through it once and everything will be cleared.

Hope you understand the concept

Please give positive feedback by giving thumsup

Thankyou