Which of the following statements is incorrect regarding the taxation of trusts and estates? A trust...

Which of the following statements is incorrect regarding the taxation of trusts and estates? A trust computes its tax using a tax rate schedule that is unfavorable relative to the rate A. schedules applicable to individuals. A trustee may not elect to treat any part of the trust's estimated tax payments as paid by a B. beneficiary. Trust income that is passed to a beneficiary retains the same character in the beneficiary's hands as when received by the trust. D. When a trust terminates, it no longer is a separate tax entity.

Solutions

Expert Solution

The statement which is incorrect regarding the taxation of trusts and estates is:

A trustee may not elect to treat any part of the trust's estimated tax payments as paid by a B. beneficiary.

The correct statement is ' A trustee may elect to treat any part of the trust's estimated tax payments as paid by a B. beneficiary. '

All other three statements are correct regarding the taxation of trusts and estate.

Answer is b. A trustee may not elect to treat any part of the trust's estimated tax payments as paid by a B. beneficiary.

ekkarill92 answered 1 year ago

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