What is the benefit of the 65-day rule?
What will be an ideal response?
The benefit of the 65-day rule is that it allows estates or trusts to shift income from being taxed on the fiduciary's tax return to a beneficiary's (or beneficiaries') tax return(s). Sometimes by the end of the year, the exact amount of the fiduciary's income will not be known nor will the tax situation of the beneficiaries necessarily be known. The 65-day rule lets fiduciaries postpone making distributions until early in the next year so that the tax situation of the fiduciary and the beneficiaries can be assessed and an intelligent decision made concerning whether to have income taxed at the fiduciary or the beneficiary level.
You might also like to view...
A debit balance in the discount on notes payable account will normally become a debit to Interest Expense
a. True b. False Indicate whether the statement is true or false
Distributors are part of the ______ environment of organizations.
a. alliance b. task c. sociopolitical d. general e. internal
If an Olympic skier enjoys the speed and motion of alpine skiing, what type of reward may training hold?
a. External b. Time off c. Intrinsic d. Bonuses
"What's the purpose of a website?" and "Who should be responsible for it?" are among significant questions that must be answered before a website is created if that website is to be successful
Indicate whether the statement is true or false