The conduit approach for fiduciary income tax means

Question

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The conduit approach for fiduciary income tax means that the distributed income has the same character in the hands of the beneficiary as it has to the trust. This means that if the trust receives interest income, for example, and distributes it to the beneficiary, the beneficiary must report it on their tax return as interest income. This allows the income to be taxed only once, at the individual level, rather than at both the trust and individual levels.

The Conduit Approach for Fiduciary Income Tax Means