Identify which of the following statements is true.
A)The personal exemption available to a trust is adjusted annually based on changes in the consumer price index.
B)Income received by a trust beneficiary has the same character it had at the trust level.
C)Distributable net income (DNI)excludes tax-exempt income.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The other statements are false. The personal exemption available to a trust is not adjusted annually based on changes in the consumer price index (A), and distributable net income (DNI) includes tax-exempt income (C). However, income received by a trust beneficiary does have the same character it had at the trust level (B).

Identify Which of the Following Statements Is True