1. **Problem Statement:** Calculate the taxable income of the trust under the Zimbabwe Income Tax Act for the year ended 31 December 2024, given the net rentals, expenses, and payments for maintenance and education. 2. **Relevant Tax Rules:** - Income from rentals is taxable. - Structural alterations (capital expenses) are not deductible from rental income. - Payments for maintenance and education of a minor beneficiary from the trust income are generally distributions and may affect taxable income. 3. **Given Data:** - Net rentals earned: $750,000 (after charging $300,000 for structural alterations) - Structural alterations: $300,000 (capital expense, not deductible) - Payments for maintenance and education: $65,000 and $80,000 4. **Step-by-step Calculation:** - The $750,000 net rentals are after deducting the $300,000 structural alterations, but since structural alterations are capital expenses, they should not reduce taxable income. - Therefore, gross rental income before structural alterations is: $$750,000 + 300,000 = 1,050,000$$ - The payments for maintenance and education ($65,000 + $80,000 = $145,000) are distributions of income to the beneficiary and reduce the income retained in the trust but do not reduce taxable income of the trust. - Taxable income of the trust is the gross rental income: $$\text{Taxable Income} = 1,050,000$$ 5. **Explanation:** Structural alterations are capital expenses and cannot be deducted from rental income for tax purposes. The trust's taxable income includes the full rental income before capital expenses. Payments for maintenance and education are distributions and do not reduce taxable income. **Final Answer:** The taxable income of the trust for the year ended 31 December 2024 is **$1,050,000**.