Identification

Question 1

A legal arrangement in which a trustee manages property for the benefit of a beneficiary.

Answer 1

Trust

Question 2

A tax on the transfer of the estate of a deceased person.

Answer 2

Estate Tax

Question 3

The person for whose benefit a trust is created.

Answer 3

Beneficiary

Question 4

The person who establishes a trust.

Answer 4

Trustor/Grantor

Question 5

A person or corporation that holds in trust an estate for another person.

Answer 5

Fiduciary

Question 6

A trust that can be altered or revoked by the grantor.

Answer 6

Revocable Trust

Question 7

The income received by an estate or trust, similar to that of individuals.

Answer 7

Gross Income

Question 8

The arrangement created when income from an estate is shared by co-owners not under judicial settlement.

Answer 8

Co-ownership

Question 9

Income held in trust for an unborn or unascertained beneficiary.

Answer 9

Income Accumulated in Trust

Question 10

A trust that cannot be changed or canceled, both as to corpus and income.

Answer 10

Irrevocable trust

Question 11

A partnership formed by professionals to practice their common profession, not involved in any trade or business.

Answer 11

General Professional Partnership (GPP)

Question 12

The optional deduction that a GPP can claim, up to 40% of gross income, instead of itemized deductions.

Answer 12

Optional Standard Deduction (OSD)

Question 13

The tax classification of partnerships that operate as corporations, with partners regarded as stockholders.

Answer 13

General Co-Partnership (Compania Colectiva)

Question 14

A legal relationship where partners contribute money, property, or industry to divide profits.

Answer 14

Partnership

Question 15

Income classification for the share received by partners in GPP, taxed at the individual level.

Answer 15

Distributive Share

Question 16

Partners’ deduction method limited to either itemized deductions or OSD, based on the practice of profession.

Answer 16

Tax Deduction Choice

Question 17

A shared ownership that is not subject to income tax unless used for profit-generating activities.

Answer 17

Co-Ownership

Question 18

Document required by GPPs to report income, deductions, and partners’ distributive shares.

Answer 18

Annual Information Return

Question 19

The deduction choice that cannot be further claimed once distributive shares in GPP income are received.

Answer 19

Itemized Deduction or OSD

Question 20

Tax classification applied to partnerships involved in profit-based activities, resulting in corporate tax treatment.

Answer 20

Corporation