WIN employee No. | WIN expenses |
1 | $6,000 |
2 | 5,000 |
3 | 4,000 |
4 | 4,000 |
5 | 3,000 |
Total | 22,000 |
For the taxable year 1972 the income of XYZ trust is $10,000 which is allocable as follows: $5,000 to XYZ trust, $2,000 to beneficiary A, and $3,000 to beneficiary B. Beneficiaries A and B make their returns on the basis of a calendar year.
WIN employees | 1 | 2 | 3 | 4 | 5 | Total |
Total WIN expenses | $6,000 | $5,000 | $4,000 | $4,000 | $3,000 | |
XYZ Trust: $5,000/10,000 | 3,000 | 2,500 | 2,000 | 2,000 | 1,500 | $11,000 |
Beneficiary A: $2,000/10,000 | 1,200 | 1,000 | 800 | 800 | 600 | 4,400 |
Beneficiary B: $3,000/10,000 | 1,800 | 1,500 | 1,200 | 1,200 | 900 | 6,600 |
Assume that beneficiary A hired a WIN employee during his taxable year 1972 and incurred $6,000 in wages. Also, assume that beneficiary B did not hire WIN employees during his taxable year 1972 and that beneficiaries A and B did not own any interests in other trusts, estates, partnerships, or electing small business corporations that hired WIN employees. The WIN expenses of XYZ trust are $11,000, of beneficiary A are $10,400, and of beneficiary B are $6,600.
26 C.F.R. §1.50B-3