What is the definition of entity accounting income

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Reference no: EM13990204

a. Describe the nature of trust and estate taxation. How does it compare to partnerships, LLCs and S corporations? 

b. Discuss how accounting income of trusts and estates is determined. What is the definition of entity accounting income?

c. In June 2011, Reba gives Julius a house (basis of $150,000; fair market value of $450,000) to be used as his personal residence. Before his death in May 2012, Julius installs a tennis court in the backyard at a cost of $25,000.

The residence has a value of $465,000 when Julius dies. Determine the income tax basis of the properly to the heir based on the following independent assumptions.

a. The residence passes to Reba.

b. The residence passes to Burl (Reba's husband).

c. The residence passes to Tina (Reba's daughter). 

Reference no: EM13990204

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