Which one of the following is not true of the tax treatment of fiduciaries?
A)Income is taxed to the beneficiary of the trust or estate to the extent of current distributions of income.
B)The trust or estate is entitled to a deduction for current distributions of income.
C)Distributions to beneficiaries are treated like corporate dividends.
D)Distributions from corpus generally are not taxable to beneficiaries.

Question

Quizplus · Accepted Answer

Distributions to beneficiaries are not treated like corporate dividends. Rather, they are taxed to the beneficiary to the extent of distributions from income or corpus.

Which One of the Following Is Not True of the Tax