FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 28: Income Taxation of Trusts and Estates

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

The Philmore Estate is subject to a 40% Federal estate tax rate and a 45% Federal and state income tax rate.Generally,an administrative expense should be claimed on the estate's income tax return.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Essay

Review LaterAdd Note

Review Later

The Form 1041 of a calendar-year trust is due on ____________________ 15 (not including extensions) of the following year.

Correct Answer

verified

Show Answer

Question 53

Short Answer

Review LaterAdd Note

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase. a.Complex b.Decedent c.Executor d.Grantor e.Living f.Reversionary g.Simple h.Sprinkling i.Trustee -The fiduciary in charge of a trust.

Distributable net income (DNI) is the ____________________ (maximum,minimum) amount that can be included in the beneficiaries' gross incomes from the fiduciary for the year.

The distributable net income (DNI) of a fiduciary taxpayer:

With respect to a trust's timely filed Form 1041,the IRS will accept:

For each of the following independent statements, choose the best answer. a.Tax attribute of complex trusts only b.Tax attribute of estates only c.Tax attribute of estates and complex trusts d.Tax attribute of neither estates nor complex trusts -The entity has a legal identity separate from its beneficiaries.

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

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase. a.Complex b.Decedent c.Executor d.Grantor e.Living f.Reversionary g.Simple h.Sprinkling i.Trustee -An estate always is created upon the death of this party.

Under IRS regulations,the decedent's estate must terminate within four years of the date of death,so as to minimize income-shifting techniques.

The Rodriguez Trust generated $300,000 in alternative minimum taxable income (AMTI) this year.Concerning the AMTI,the trust is subject to a marginal Federal income tax rate of:

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase. a.Complex b.Decedent c.Executor d.Grantor e.Living f.Reversionary g.Simple h.Sprinkling i.Trustee -​The entity typically can choose any fiscal tax year. ​ ​ ​ ​

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase. a.Complex b.Decedent c.Executor d.Grantor e.Living f.Reversionary g.Simple h.Sprinkling i.Trustee -A trust whose remainder beneficiary is its grantor.

For each of the following independent statements, choose the best answer. a.Tax attribute of complex trusts only b.Tax attribute of estates only c.Tax attribute of estates and complex trusts d.Tax attribute of neither estates nor complex trusts -Distributable net income is used to account for distributions by the entity to its beneficiaries.

Like a corporation,the fiduciary reports and pays its own Federal income tax liability.

The Drabb Trust owns a plot of business-related land,basis of $50,000,fair market value of $35,000.Drabb is subject to a 35% marginal income tax rate.Its sole beneficiary,Eddie,is subject to a 15% marginal income tax rate.Drabb's current-year distributable net income is $95,000.What is the most preferable action for the trustee of Drabb to take,considering only the related tax consequences?

Generally,an estate's taxable income is computed in a manner similar to that used for a(n) ____________________.

When the Holloway Trust terminated this year,it held a $1 million NOL carryforward.How is the loss carryforward treated? Does it expire with the trust or can another taxpayer use it? Be specific.

If provided for in the controlling agreement,a trust might terminate when the income beneficiary reaches age 35.

For each of the following independent statements, choose the best answer. a.Tax attribute of complex trusts only b.Tax attribute of estates only c.Tax attribute of estates and complex trusts d.Tax attribute of neither estates nor complex trusts -The entity must file an income tax return if its gross income for the year is $600 or more.