Expert Answer :CHAPTER 1UNDERSTANDING AND WORKING WITH THE FED

Solved by verified expert :2431. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #1 Tax planning motivations usually are secondary to other objectives in deciding whether to create a trust.a. Trueb. False2432. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #2 A trust might be used by the parties to an impending divorce.a. Trueb. False2433. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #3 Like a limited liability company, the fiduciary is a tax-reporting, but not a separate tax-paying entity.a. Trueb. False2434. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #4 An estate’s income beneficiary generally must wait until the entity is terminated by the executor to receive any distribution of income.a. Trueb. False2435. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #5 With respect to a trust, the terms creator, donor, and grantor are synonyms.a. Trueb. False2436. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #6 Corpus, principal, and assets of the trust are synonyms.a. Trueb. False2437. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #7 If provided for in the controlling agreement, a trust might terminate when the income beneficiary graduates with a law degree.a. Trueb. False2438. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #8 The decedent’s estate must terminate within four years of the date of death.a. Trueb. False2439. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #9 Trusts usually are required to use a calendar tax yeara. Trueb. False2440. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #10 A complex trust pays tax on the income that it retains and adds to corpus.a. Trueb. False2441. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #11 A complex trust may incur a liability for the AMT.a. Trueb. False2442. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #12 The first step in computing an estate’s taxable income is the determination of its gross income for the year.a. Trueb. False2443. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #13 Generally, capital gains are allocated to fiduciary income, because they relate to investment assets.a. Trueb. False2444. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #14 Gain or loss is recognized by a trust when it distributes a non-cash asset.a. Trueb. False2445. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #15 Income in respect of a decedent can be subject to both income and estate tax at the Federal level.a. Trueb. False2446. CHAPTER 20—INCOME TAXATION OF TRUSTS AND ESTATES Question TF #16 An example of income in respect of a decedent is the taxpayer’s last paycheck, uncollected at death.a. Trueb. False