The Ming Trust distributes an asset to its income beneficiary that shows a realized gain. What are the Federal income tax consequences of the distribution? What if the asset shows a realized loss?
What will be an ideal response?
By default (i.e., no election is made), an in-kind distribution is not a taxable event for the fiduciary. The beneficiary takes a carryover basis in the asset received. By election, however, the fiduciary can recognize the realized gain or loss on the date of the distribution. But if the related party rules apply, the recognition of any loss may be deferred.
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________ is a form of co-ownership that includes the right of survivorship as well the right of tenants to unilaterally transfer their interest without the consent of co-tenants
A) Tenancy in common B) Joint tenancy C) Cooperatives D) Tenancy by the entirety
Many business writers begin their report research by A) conducting interviews
B) observing others. C) constructing questionnaires and inventories. D) visiting company records and files.
How was EMONET—The Emotions in Organizations Network, founded?
a. A large United States grant agency was looking for a topic to fund, so it created EMONET and appointed its leaders (who had to apply for the leader positions) b. A publishing company was trying to promote its books on emotional intelligence, so it hired people to lead EMONET c. A small group of scholars came up with the idea for EMONET while having dinner d. A billionaire who attributed his success to his emotional skills created the organization
Which of the following is not a reason for the use of negotiable instruments?
A) Reduction of the chance of forgery or material alteration B) Convenience C) Elimination of the risk of loss or theft of cash D) Reduction of cost to the federal government of maintaining an adequate supply of currency