For tax purposes, trusts can be divided into two basic categories: grantor trusts and trusts recognized as separate taxable entities subject to the provisions of Subchapter J.

Question

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This statement is true. Grantor trusts are treated as part of the grantor's personal income for tax purposes, while other types of trusts are considered separate taxable entities under Subchapter J of the tax code.

For Tax Purposes, Trusts Can Be Divided into Two Basic