Lorraine created a trust by transferring $500,000 of stock and bonds into it on January 1, year

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Lorraine created a trust by transferring $500,000 of stock and bonds into it on January 1, year 1. The trust is to provide her mother with income for her lifetime, with the remainder interest going to Lorraine’s son. Lorraine retained the power to revoke both the income interest and the remainder interest. Who is taxed on the trust’s year 1 income?
a. Lorraine’s son
b. Lorraine’s mother
c. Lorraine
d. The trust

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Taxation For Decision Makers 2019

ISBN: 9781119497288

9th Edition

Authors: Shirley Dennis Escoffier, Karen A. Fortin

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