A Fiduciary Can Elect Whether or Not to Recognize a Gain

question 34

True/False

A fiduciary can elect whether or not to recognize a gain for tax purposes on the distribution of appreciated property made in fulfillment of a pecuniary bequest to a beneficiary.

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Definitions:

Earned

Received as a result of work or effort.

Simple Interest Rate

The rate at which simple interest is calculated, usually on an annual basis.

Borrowed

Funds taken as a loan from a lender with the agreement to pay back with interest.

Term Deposit

A fixed-term investment held at a financial institution that pays interest at a specified rate and matures on a specific date.