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Which of the Following Statements Regarding the Taxation of a Trust

Question 1

Multiple Choice

Which of the following statements regarding the taxation of a trust is incorrect?


A) Trusts are generally not taxed at favorable rates for income shifting.
B) A trust's long- term capital gains are taxed at a top rate of 15%.
C) Trusts are not subject to double taxation.
D) An irrevocable trust's income is taxed to the grantor.

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