My non-regulated family trust which is a Nevada Corporation paid; $987,000.00 in federal tax on $36.5M in income.
Like individuals, trusts must pay taxes on earnings. Yet trusts vault into the highest bracket much quicker than individuals do: In 2014, trusts pay the maximum rate on any earnings above $12,150, while individuals can make as much as $406,750 before the top rate kicks in.
In addition, many trusts face a bigger income-tax bite when they file this year because of new higher rates on top earners that took effect in 2013. The maximum rate for trusts is 43.4%, now that the highest tax bracket has risen to 39.6% and there is also a new 3.8% surtax on net investment income for high earners.
How a Trust Can Cut Taxes - WSJ
Liar.