A fiduciary's distribution deduction shifts the tax burden for current-year income from the entity to the beneficiary.

Question

Quizplus · Accepted Answer

When a fiduciary makes a distribution to a beneficiary, the income is no longer taxed at the entity level but is instead shifted to the beneficiary's individual tax return. This means that the tax burden for the current-year income is shifted from the entity to the beneficiary. Therefore, the statement is true.

A Fiduciary's Distribution Deduction Shifts the Tax Burden for Current-Year