Identify which of the following statements is false.
A)A trust receives no standard deduction when computing taxable income.
B)Trust tax preparation fees are miscellaneous itemized deductions and subject to the 2% nondeductible floor.
C)There is no limit on a fiduciary's charitable contribution deduction if such a contribution is authorized in the trust instrument.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Trust tax preparation fees are fully deductible in computing adjusted gross income and are not subject to the 2% floor applicable to miscellaneous itemized deductions for individuals. This is because they are considered costs necessary for the administration of the trust and not miscellaneous itemized deductions.

Identify Which of the Following Statements Is False