Question 1

The Code defines a "simple trust" as which of the following?

Accepted Answer

A)  One which is allowed to file Form 1041-EZ.
B)  One which has only one income beneficiary.
C)  One which must distribute its accounting income every year.
D)  One whose grantor was a living individual.E) A) and B)
F) A) and C)

Question 2

When a beneficiary receives a distribution from a trust of an asset other than cash, the realized loss could be disallowed under the ____________________ rule.

Accepted Answer

The answer of When a beneficiary receives a distribution from...

Question 3

The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George.This year, the trust incurred the following.
  
The trustee distributed $40,000 to Paula and $40,000 to George.

Accepted Answer

* 40/60 ´ $6,000
** $20,000 - $2,00...

Question 4

When a trust operates a trade or business, it can claim a deduction for wages paid to employees.

Accepted Answer

A) True 
 B)False

Question 5

Tax professionals use the terms simple trust and complex trust when dealing with fiduciary arrangements. How does one know whether a trust is "simple" or "complex?" When is this determination made?

Accepted Answer

Under the rules of Subchapter J, a simpl...

Exam 28: Income Taxation of Trusts and Estates

When a beneficiary receives a distribution from a trust of an asset other than cash, the realized loss could be disallowed under the ____________________ rule.

Correct Answer
verified

The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George.This year, the trust incurred the following. The trustee distributed $40,000 to Paula and $40,000 to George.

Correct Answer
verified
* 40/60 ´ $6,000
** $20,000 - $2,00...
View Answer

The Code defines a "simple trust" as which of the following?

Correct Answer
verified

When a trust operates a trade or business, it can claim a deduction for wages paid to employees.

Correct Answer
verified

Tax professionals use the terms simple trust and complex trust when dealing with fiduciary arrangements. How does one know whether a trust is "simple" or "complex?" When is this determination made?

Correct Answer
verified
Under the rules of Subchapter J, a simpl...
View Answer

Exam 28: Income Taxation of Trusts and Estates

When a beneficiary receives a distribution from a trust of an asset other than cash, the realized loss could be disallowed under the ____________________ rule.

Correct AnswerverifiedShow Answer

The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George.This year, the trust incurred the following. The trustee distributed $40,000 to Paula and $40,000 to George.

Correct Answerverified * 40/60 ´ $6,000** $20,000 - $2,00...View AnswerShow Answer

The Code defines a "simple trust" as which of the following?

Correct AnswerverifiedShow Answer

When a trust operates a trade or business, it can claim a deduction for wages paid to employees.

Correct AnswerverifiedShow Answer

Tax professionals use the terms simple trust and complex trust when dealing with fiduciary arrangements. How does one know whether a trust is "simple" or "complex?" When is this determination made?

Correct AnswerverifiedUnder the rules of Subchapter J, a simpl...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
* 40/60 ´ $6,000
** $20,000 - $2,00...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Under the rules of Subchapter J, a simpl...
View Answer