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In brief, based on the following information, the answer is no. SEE BELOW:Income
retained by the trust--Generally, trusts are “pass-through
entities.” This means that trust income retained by the trust is taxed to the trust (but not if it is a charitable remainder trust), while distributed income is taxed to the beneficiary
who receives it. In general, trusts are taxed like individuals
for income tax
purposes. General tax principles
that apply to individuals also apply to trusts. A trust may earn tax-exempt
income and may deduct expenses. Trusts are also allowed a small exemption. Income taxed to a trust is reported on Federal Form 1041
(U.S. Income Tax Return
for Estates and Trusts). Federal Form 1041 is called a fiduciary income tax return because the trustee (i.e., the fiduciary) is responsible for filing
it and for paying any taxes owed.
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