Question

In which of the following circumstances will income of the child be taxed at the tax rates applicable to estates and trusts?

Answer 1

The income of a child will be taxed at the tax rates applicable to estates and trusts if they receive income from a trust or an estate.

Step-by-step explanation:

The income of a child will be taxed at the tax rates applicable to estates and trusts in the following circumstance:

When the child receives income from a trust or an estate. This can occur if the child is a beneficiary of a trust or receives an inheritance from a deceased relative.

Income from a trust or an estate is subject to different tax rates than individual income tax rates. These rates may vary depending on the type of income and the total amount of income received.