Estates and Trusts
Estates and trusts may be subject to income tax at the estate or trust level, or the beneficiaries may be subject to income tax on their share of income. Where the all income must be distributed, the beneficiaries are taxed similarly to partners in a partnership. Where income may be retained, the estate or trust is taxed. It may get a deduction for later distributions of income. Estates and trusts are allowed only those deductions related to producing income, plus $1,000. They are taxed at graduated rates that increase rapidly to the maximum rate for individuals. The tax rate for trust and estate income in excess of $11,500 was 35% for 2009. Estates and trusts are eligible for the reduced rate of tax on dividends and capital gains through 2011.
Read more about this topic: Income Tax In The United States
Famous quotes containing the words estates and, estates and/or trusts:
“I hate the noise and hurry inseparable from great Estates and Titles, and look upon both as blessings that ought only to be given to fools, for ‘tis only to them that they are blessings.”
—Mary Wortley, Lady Montagu (1689–1762)
“I hate the noise and hurry inseparable from great Estates and Titles, and look upon both as blessings that ought only to be given to fools, for ‘tis only to them that they are blessings.”
—Mary Wortley, Lady Montagu (1689–1762)
“Baseball is the religion that worships the obvious and gives thanks that things are exactly as they seem. Instead of celebrating mysteries, baseball rejoices in the absence of mysteries and trusts that, if we watch what is laid before our eyes, down to the last detail, we will cultivate the gift of seeing things as they really are.”
—Thomas Boswell, U.S. sports journalist. “The Church of Baseball,” Baseball: An Illustrated History, ed. Geoffrey C. Ward, Knopf (1994)