This Year G Transferred Property to a Trust

question 29

Multiple Choice

This year G transferred property to a trust.Under the terms of the trust, a qualified charity is to receive the income from the trust for 10 years at which time the property is returned to G.Which of the following statements is true?

• A)G will receive an income tax deduction for the value of the income interest in year one but in each year must report the actual income of the trust.
• B)G will receive an income tax deduction for the value of the remainder interest in year one but in each year must report the actual income of the trust.
• C)G will receive a deduction for the value of the income interest in year one and the trust will report the income it actually receives and distributes to the charity in subsequent years.
• D)None of the above are true.

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