Which One of the Following Is Not True of the Tax

question 51

Multiple Choice

Which one of the following is not true of the tax treatment of fiduciaries?

• A)Income is taxed to the beneficiary of the trust or estate to the extent of current distributions of income.
• B)The trust or estate is entitled to a deduction for current distributions of income.
• C)Distributions to beneficiaries are treated like corporate dividends.
• D)Distributions from corpus generally are not taxable to beneficiaries.

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Definitions:

Everyday Clothes

Apparel items that are worn on a daily basis, typically casual or informal in nature.

High Risk Individuals

High risk individuals are those considered more likely to encounter certain hazards or negative outcomes due to their behaviors, characteristics, or environmental factors.

Low Risk

Refers to investments or decisions that carry a minimal potential for losing value or experiencing negative outcomes.

Insurance Company

A business entity that provides financial protection and risk management to individuals and organizations against potential losses in exchange for premium payments.