Which of the Following Statements Regarding the Taxation of a Trust

question 101

Multiple Choice

Which of the following statements regarding the taxation of a trust is incorrect?

• A)An irrevocable trust's income is taxed to the grantor.
• B)Trusts are generally not taxed at favorable rates for income shifting.
• C)Trusts are not subject to double taxation.
• D)A trust's long-term capital gains are taxed at a top rate of 15%.

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Definitions:

Anger And Hostility

Emotional states and behavioral attitudes characterized by strong feelings of displeasure, irritation, and antagonism towards others.

Type A Personality

A personality type characterized by high competitiveness, self-criticism, time urgency, and a tendency towards workaholism and hostility.

Adaptive Coping

Strategies effectively used to manage stressors or challenges, promoting positive mental health.

Constructive Coping

Adaptive ways of handling stress, including problem-solving, seeking social support, and reframing perceptions of stress.