misc tax pt2

Question 1

limit on gift to spouses

Answer 1

An unlimited exclusion from the gift tax applies for gifts to spouses.

Question 2

Ordinary and necessary administration expenses of an estate are deductible:

Answer 2

Ordinary and necessary administration expenses of an estate are deductible on the fiduciary income tax return if the administrator of the estate waives the deduction on the estate tax return.

Question 3

An executor of a decedent’s estate that has only U.S. citizens as beneficiaries is required to file a fiduciary income tax return, if the estate’s gross income for the year is at least

Answer 3

$600

Fiduciary income tax return: the trust’s fiduciary (administrator) is responsible for filing all forms

Question 4

DNI taxed to rust and to beneficiary

Answer 4

DNI is the maximum amount of income taxable to the beneficiaries. If all of the income was distributed, the beneficiary is taxed on DNI and the trust has no taxable income.