Question

The Revocable Trust qualifies for Grantor Trust status under IRC Code Section

671

673

674

All of the above

Answer 1

Option : d) All of the above

Explanation:

The Grantor trust is one that is derived from the federal tax code, although you will not find the term "Grantor trust" anywhere in the Internal Revenue Code (IRC ) or the income tax regulations issued under the Code.

A "Grantor Trust" is a trust in which the grantor or some other person retains control over the trust to such an extent that the grantor or other person who acts as a grantor, rather than the fiduciary or beneficiary, is treated for federal income tax purposes as the owner of all or part of the trust, and is therefore taxes directly on the income and other tax attributes of the trust.

section 672 defines certain terms such as "adverse party", "related or subordinate party", etc.

Section 673 through 677 set forth the rules under which a grantor will be treated as owning part of the trust means which person act as a Grantor of trust.

Through Section 678 sets forth the rules under which persons other than the grantor (such as a beneficiary) will be treated as owner or owning the trust.