Income Is Taxed to the Creator of An) ___________Trust Instead

question 90

Short Answer

Income is taxed to the creator of an) ___________trust instead of to the entity.

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Definitions:

Dissociation

In a legal context, the process by which a member is removed from a partnership or limited liability company.

Liability

The state of being legally responsible for something, particularly in terms of debts or legal obligations.

Partnership

An authorized business arrangement where two or more partners share both the administration and the profits.

Dissolution

The closure or termination of an entity's existence, such as a corporation or partnership.