What is the maximum tax rate for estates and trusts under the Tax Cuts and Jobs...

Question

Question

What is the maximum tax rate for estates and trusts under the Tax Cuts and Jobs Act?

A: 15%.

B: 33%.

C: 37%

D: 39.6%.

business accounting

Answer 1

Answer #1

Answer is as under :
Option D : 39.6 %

Reason :

It is assume that the question is with referecne to FY 2017 . For the year 2017, slab rate for estate and trusts is as under as per the TAX and JOBS Act :

If taxable income is:	The tax is:
Less than $2,550	15% of taxable income
Over $2,550 but Less than $6,000	$382.50 plus 25% of the excess over $2,550
Over $6,000 but Less than $9,150	$1,245 plus 28% of the excess over $6,000
Over $9,150 but Less than $12,500	$2,127 plus 33% of the excess over $9,150
Over $12,500	$3,232.50 plus 39.6% of the excess over $12,500

Answer 2

Similar Homework Help Questions

What is the maximum tax rate for estate and trust under the tax cuts and jobs...

What is the maximum tax rate for estate and trust under the tax cuts and jobs act
Prior to the Tax Cuts and Jobs Act, corporations faced a progressive tax rate schedule with...

Prior to the Tax Cuts and Jobs Act, corporations faced a progressive tax rate schedule with rates ranging from 15% to 39%. Under that old tax law, a firm with taxable income of $100 million would have owed taxes of $35 million. Under the Tax Cuts and Jobs Act, the corporate tax rate is a flat 21%. For a firm that makes $100 million in taxable income, the size of the tax reduction that the firm enjoys because of the...
Estates and Trusts If taxable income is over: But not over: The tax is: $ 0...

Estates and Trusts If taxable income is over: But not over: The tax is: $ 0 $ 2,600 10% of taxable income $ 2,600 $ 9,300 $260 plus 24% of the excess over $2,600 $ 9,300 $12,750 $1,868 plus 35% of the excess over $9,300 $12,750 $3,075.50 plus 37% of the excess over $12,750 In 2019, Sheryl is claimed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. What is Sheryl's...

As a result of the Tax Cuts and Jobs Act, under Federal tax law the tax...

As a result of the Tax Cuts and Jobs Act, under Federal tax law the tax preparation fees deduction will be suspended starting in tax year 2018. Therefore, under California tax law, a California taxpayer who itemizes his or her deductions and has an adjusted gross income (AGI) of $35,000, and no miscellaneous expenses other than tax preparation fees of $1,000, would be able to take a deduction of what amount on his or her California income tax return for...
Under the 2017 Tax Cuts and Jobs Act, the most significant change is that the corporate...

Under the 2017 Tax Cuts and Jobs Act, the most significant change is that the corporate tax rate goes from 35 percent to 21 percent, which puts U.S. Companies on competitive footing with many other countries. True or False
There has been discussion about whether the Tax Cuts and Jobs Act that took effect in...

There has been discussion about whether the Tax Cuts and Jobs Act that took effect in 2018 will increase tax revenue. Tax revenue can be thought of an as average tax rate multiplied by taxable income. If the average tax rate falls while taxable income stays the same, tax revenue will fall. But what if the tax cuts increase taxable income? Both of the major schools of thought in macroeconomics (Keynesians and Neoclassicals) believe that tax cuts increase economic growth....

There has been discussion about whether the Tax Cuts and Jobs Act that took effect in...

There has been discussion about whether the Tax Cuts and Jobs Act that took effect in 2018 will increase tax revenue. Tax revenue can be thought of an as average tax rate multiplied by taxable income. If the average tax rate falls while taxable income stays the same, tax revenue will fall. But what if the tax cuts increase taxable income? Both of the major schools of thought in macroeconomics (Keynesiansand Neoclassicals) believe that tax cuts increase economic growth. Economic growth...
There has been discussion about whether the Tax Cuts and Jobs Act that took effect in...

There has been discussion about whether the Tax Cuts and Jobs Act that took effect in 2018 will increase tax revenue. Tax revenue can be thought of as an average tax rate multiplied by taxable in come. If the average tax rate falls while taxable income stays the same, tax revenue will fall. But what if the tax cuts increase taxable income? Both of the major schools of thought in macroeconomics (Keynesians and Neoclassics) believe that tax cuts increase economic...
What changes of the Tax Cuts and Jobs Act ("TCJA") do you NOT agree with and...

What changes of the Tax Cuts and Jobs Act ("TCJA") do you NOT agree with and what would you suggest Congress do to fix it ?

President Trump's Tax Cuts and Jobs Act became effective in 2018. This legislation cut the top...

President Trump's Tax Cuts and Jobs Act became effective in 2018. This legislation cut the top corporate tax rate from 35% to 21%. What is the likely impact on corporate capital structure? Will firms finance with less debt, more debt, or the same amount going forwards? A.) More debt B.) Less debt C.) Same amount of debt D.) Not possible to determine. We will have to wait and see