In the Year of Termination, a Trust Incurs a $20,000

question 72

Essay

In the year of termination, a trust incurs a $20,000 NOL. In addition, it has a $30,000 NOL carryover from the two preceding tax years. The trust distributes 40% of its assets to Sam, 30% of its assets to Alex, and 30% of its assets to Catherine. How much of the NOL can Sam (who has $150,000 of gross income)deduct on his return in the year that the trust terminates?

---

Definitions:

Remarry

The act of marrying again after the dissolution of a previous marriage, through divorce or widowhood.

Constructive Communication

A method of exchanging ideas and information that fosters positive engagement, understanding, and problem-solving.

Financial Planner

A professional who helps individuals manage their finances by providing advice on investments, budgeting, retirement planning, and other financial decisions.

Media Exposure

The extent to which individuals come into contact with or consume various forms of media, including television, radio, internet, and print.