Dan dies holding a limited power of appointment over the assets of a trust. on what schedule is the value of the intrest reported?
a) schedule e
b) schedule f
c) schedule h
d) it is not included in his estate

Schedule E

Explanation:

Dan dies holding a limited power of appointment over the assets of a trust. On what Schedule is the value of the interest reported?

A) Schedule E

B) Schedule F

C) Schedule H

D) It is not included in his estate

Power of appointment is a right given in a written instrument allowing an individual to decide to distribute property. ... The holder of the limited power of appointment can transfer property to anyone other than himself/ herself.

Schedule E (Form 1040) is used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts etc.

Schedule F is used to report farm income

Schedule H (Form 1040) is used  to report household employment taxes. A household employee paid in wages and the wages were subject to social security, Medicare, or FUTA taxes, or if you withheld federal income tax.

Since there is a profit on the trust which is in the care of Dan , then the interest will be filed under Schedule E

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