In the Year of Termination, a Trust Incurs a $20,000

question 72

Essay

In the year of termination, a trust incurs a $20,000 NOL. In addition, it has a $30,000 NOL carryover from the two preceding tax years. The trust distributes 40% of its assets to Sam, 30% of its assets to Alex, and 30% of its assets to Catherine. How much of the NOL can Sam (who has $150,000 of gross income)deduct on his return in the year that the trust terminates?

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Definitions:

Supplements

Products taken orally that contain dietary ingredients aimed at supplementing the diet, such as vitamins, minerals, herbs, or other nutrients.

Parenteral Nutrition

A method of feeding a person intravenously, bypassing the usual process of eating and digestion.

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A condition characterized by abnormally low blood sugar levels, which can cause symptoms such as dizziness, sweating, and confusion.

Pharmacy

A field of health science that links medical science with chemistry and is charged with the discovery, production, disposal, safe and effective use, and control of medications and drugs.