Martha died and by her will, specifically bequeathed, and the executor distributed, $20,000 cash and a $70,000 house to Harold. The distributions were made in a year in which the estate had $65,000 of DNI, all from taxable sources. The maximum Harold will be required to report as gross income as a result of these distributions is

Question

Quizplus · Accepted Answer

The distributions of specific bequests, such as the $20,000 cash and the $70,000 house, are not included in the beneficiary's gross income. Therefore, Harold is not required to report any of these distributions as gross income.

Martha Died and by Her Will, Specifically Bequeathed, and the Executor