Charitable Contributions Made by a Fiduciary

question 31

Multiple Choice

Charitable contributions made by a fiduciary

• A)are limited to 50% of fiduciary income.
• B)must be authorized in the trust instrument in order to be deductible.
• C)flows through to be deducted on the beneficiary's tax return.
• D)are subject to the 2% floor.

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Definitions:

Separate Legal Entity

A business structure that is legally considered an independent entity separate from its owners, such as a corporation or LLP.

Limited Partnership

A partnership with general and limited partners.

Limited Liability

A legal structure that protects a company's owners or investors from being personally liable for the company's debts or liabilities beyond their investment in the company.

Partners

Individuals who share ownership of a business entity and are mutually obligated to the entity's liabilities and operational decisions.