Question: A trustee incurs several expenditures which are listed below. Which expenditures are deductible and why? a. As part of the trust corpus, a trust owns
A trustee incurs several expenditures which are listed below. Which expenditures are deductible and why?
a. As part of the trust corpus, a trust owns title to a personal residence in which one of the trust beneficiary resides rent-free. The trust pays $5,000 seasonally for landscape costs.
b. As part of the trust corpus, a trust owns title to a personal residence in which one of the trust beneficiaries resides and pays fair-market value rent. The trust pays weekly $5,000 weekly for landscape costs.
c. The trust pays $5,000 in legal fees to an attorney to secure a new rental building.
d. The trust pays $5,000 in income commissions to the trustee.
e. The trust pays $5,000 in corpus commissions to the trustee.
f. The trust pays $5,000 to a brokerage house as part of the latter’s investment advisory fee.
g. The trustee pays $5,000 to an appraisal firm to value a piece of real estate that it plans to distribute.
h. The trustee pays $5,000 to an appraisal firm to value a piece of
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