Practice Quiz

Financial Planner

Category - Tax Planning

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What trust has the personal exemption amount of $300?
  1. Complex Trusts
  2. Simple Trusts
  3. Both A and B
  4. Neither A or B
Explanation
Answer: B - Simple trusts have the personal exemption amount of $300. These trusts are required to distribute all of their trust accounting income to beneficiaries. They have a standard deduction of zero and are allowed deductions similar to those of individuals, except that the personal exemption amount is only $300. No distributions are allowed for charitable purposes.
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