Benchmark Assignment

Benchmark Assignment

1. The situs of a trust is determined by three Criteria. Please name these three (no discussions please).

Answer:

1) The trust is electing to continue to be treated as a domestic trust under Section 1161 of the Taxpayer Relief Act of 1997; (2) The trustee had a reasonable basis (within the meaning of I.R.C. Section 6662) under prior law for treating the trust as a domestic trust on August 19, 1996; the election form need not state the grounds for this assertion; (3) The trust filed a Form 1041 treating the trust as a domestic trust (and not a Form 1040NR treating ...