Question by UI 10. What is the trust's basis of property, when the grantor's adjusted basis...

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Question by UI 10. What is the trusts basis of property, when the grantors adjusted basis (at the time of funding) in the p

business accounting

Answer 1

Answer #1

Trust's basis of property: means that assets is fully used by trust and grantor has transferred assets to trust,
Grantor doesn't have excersisable power over the property
The value of assets is same value of assets held by Grantor,
The basis of property distribution to a trust on beneficiary is the fair market value basis, rather than grantor basis.

In the Question FMV is given to be $17,000 and the answer would be the last option of $17,000

Answer 2

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