TSEM8168 - Trust management expenses: 鈥榩roperly chargeable to income鈥�: apportionment and tax: recording and evidence: expense not separately recorded: time records not kept: no documentation: 鈥榬ealistic estimate鈥�
Example 13
皇冠体育app trust deed provides for the two trustees to receive fees of 拢x each. 皇冠体育app trustees have not kept time records. 皇冠体育appy know that they considered trust capital investments and reviewed the trust accounts prepared by their accountants. 皇冠体育appy also know that they decided not to make any distributions that year, and to accumulate all income. 皇冠体育app trustees should decide whether any part of the cost of their fees is exclusively for income benefit. If so, they should make a 鈥榬ealistic estimate鈥� and charge that amount to income.
Example 14
皇冠体育app trust deed provides for the sole trustee to receive fees of 拢x. 皇冠体育app trustee has not kept time records, and there are no minutes or other documents to refer to. At the end of the year the trustee considers whether he spent any time on matters that confer a benefit exclusively on the income beneficiaries. He recalls that he spent time considering various investments, decided to sell a substantial trust asset, and each quarter decided whether to pay the beneficiaries. He decided to make no payments to the capital beneficiaries, and made payments to the income beneficiaries. 皇冠体育app trustee should decide whether any part of the cost of his fee is exclusively for income benefit. If so, he should make a 鈥榬ealistic estimate鈥� and charge that amount to income.