Which of the following statements concerning income taxation of estates and trusts is correct? I. An...

Which of the following statements concerning income taxation of estates and trusts is correct?

I. An estate is a separate taxpaying entity.

II. Income distributed by a trust to an income beneficiary of the trust is taxable to the trust.

III. The executor or administrator of an estate is responsible for filing an income tax return for the estate annually.

Group of answer choices

I, II, and III

II only

Both I and III

I only

Solutions

Expert Solution

Both I and III

I is correct since estates are taxed separately. Ii is flase since taxable income distributed is deductible to the trust. III is true since estate has no physical existence and hence the executor os the estate file the tax returns for the estate.

jeff jeffy answered 1 year ago

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