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This Year G Transferred Property to a Trust

Question 40

Multiple Choice

This year G transferred property to a trust.Under the terms of the trust, a qualified charity is to receive the income from the trust for 10 years at which time the property is returned to G.Which of the following statements is true?


A) G will receive an income tax deduction for the value of the income interest in year one but in each year must report the actual income of the trust.
B) G will receive an income tax deduction for the value of the remainder interest in year one but in each year must report the actual income of the trust.
C) G will receive a deduction for the value of the income interest in year one and the trust will report the income it actually receives and distributes to the charity in subsequent years.
D) None of the above are true.

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