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Taylor created a trust, transferred property to this trust, and retained certain interests. For income tax purposes, Taylor was treated as the owner of the trust. Taylor has created which of the following types of trusts?
The definition of a grantor trust is one in which the individual who established the trust retains control over it.
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For income tax purposes, the estate’s initial taxable period for a decedent who died on October 20:
Upon the decedent’s death, the estate may elect either a fiscal year beginning at the death date or a calendar year. The resulting tax returns are due either the fifteenth day of the fourth month following the end of the fiscal year, or April 15, respectively.
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Under the provisions of a decedent’s will, the following cash disbursements were made by the estate’s executor:
I. A charitable bequest to the American Red Cross
II. Payment of the decedent’s funeral expenses
What deduction(s) is (are) allowable in determining the decedent’s taxable estate?
The gross estate is taxed only after several deductions (discretionary and nondiscretionary) are taken. Nondiscretionary deductions include satisfying all outstanding debts, estate administrative expenses, medical expenses, funeral expenses, and certain taxes. Discretionary deductions include charitable bequests and marital deductions, both of which are unlimited.
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Of the following, which item is not normally taken into account in determining distributable net income of a simple trust?
The calculation of a distributable net income includes all of a trust’s gross income except capital gains attributable to corpus and is reduced by all of a trust’s deductions except the exemption.
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A distribution from estate income that was currently required was made to the estate’s sole beneficiary during its calendar year. The maximum amount of the distribution to be included in the beneficiary’s gross income is limited to the estate’s
DNI is the upper limit on the amount of income that a beneficiary has to include in income from a trust distribution.
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Of the following, what is the standard deduction for a trust or estate fiduciary income tax return?
There is no standard deduction allowed for fiduciary income tax returns.
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