Which of the following statements is true concerning federal income tax laws and estates?

Question

Quizplus · Accepted Answer

The income tax on the earnings from an estate can be levied either on the estate or the beneficiary, depending on the specific circumstances. For example, if the estate remains open for several years and generates significant income, it would likely be subject to income tax. However, if the estate is closed within one year and does not generate much income, the beneficiary may be liable for the income tax instead. Therefore, option D is the correct statement.

Which of the Following Statements Is True Concerning Federal Income