Which of the following statements about the taxation of trusts are correct?
1 - Income received from a deceased estate by a minor is classified as 'excepted trust income' and will not be subject to Div 6AA ITAA36.
2 - A trust cannot distribute a loss to beneficiaries to offset against their current income, but subject to certain tests, losses can be carried forward and offset against future trust income.
3 - During the period of administration of a deceased estate, no beneficiary is presently entitled to the income of the trust, but rather the trustee is assessed under s 99 ITAA36 for up to three years.

Question

Quizplus · Accepted Answer

All three statements are correct. Statement 1 accurately describes the tax treatment of income received by a minor from a deceased estate under Australian tax law. Statement 2 correctly outlines the rules regarding the distribution of losses by trusts, and Statement 3 accurately describes the tax treatment of income during the administration of a deceased estate.

Which of the Following Statements About the Taxation of Trusts