Which of the Following Statements Best Describes Income Trusts

question 41

Multiple Choice

Which of the following statements best describes income trusts?

• A) Income trust investors do not need to pay personal taxes on cash distribution received.
• B) Income trusts face the same issue of double taxation as corporations.
• C) Up to 2011, existing income trusts are allowed to treat their equity as debt for tax purposes.
• D) Income trusts usually require significant capital reinvestment in the businesses.

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