Identify Which of the Following Statements Is False

question 82

Multiple Choice

Identify which of the following statements is false.

• A)A trust receives no standard deduction when computing taxable income.
• B)Trust tax preparation fees are miscellaneous itemized deductions and subject to the 2% nondeductible floor.
• C)There is no limit on a fiduciary's charitable contribution deduction if such a contribution is authorized in the trust instrument.
• D)All of the above are false.

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Definitions:

Transfer of Ownership

The process by which the rights of property or title are moved from one party to another.

Void

A term applied to a contract that is not valid because its object is illegal or it has a defect that is so serious that it is not a contract.

Lease

(1) A transfer of the right to possess and use goods for a period of time in return for consideration. (2) The agreement between a landlord and a tenant that specifies the terms of a property rental.

Surrendering Property

The act of voluntarily giving up rights to property, often in a legal or financial context, such as in bankruptcy.