Form 1041 A Practical Gulde Exam Question 7 of 50 Select the

Form 1041 A Practical Gulde Exam Question 7 of 50 Select the best answer. Which of the following most accurately describes the difference between the treatment of a trade or business for an individual and for a trust or estate? A trust or estate is not subject to self-employment tax on income arising from the active conduct of a trade or business. O A. O B. An estate is not subject to the passive activity rules with relation to the operation of a trade or Expenses of a trade or business are not deductible in computing the adjusted gross income of a trust or estate C. Income from a trade or business is never subject to inclusion as net investment income under $1411 for a trust or estate O D

Solution

ANSWER IS: A) A TRUST IS NOT SUBJECT TO SELF EMPLOYMENT TAX ON INCOME ARISING FROM THE ACTIVE CONDUCT OF A TRADE OR BUSINESS.

TRUST DO NOT HAVE A MAIN OBJECTIVE OF CONDUCTING A BUSINESS.