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    Trust returns

    If you have not filed a return for a 2015 Trust going forward, should you file a return now for those back years? If 1099B transactions for Trust come in t/p social security number, should they be filed under Trust or t/p?

    #2
    Was the final 1040 done the year of death? Has the Trustee obtained an FEIN? The Trustee should have changed the SSN's to the EIN with the issuers after death. Why is the Trust still open? No 1041 is required when expenses for the Trust are paid from the trust. Returns are required beginning with the year any distributions of income and/or corpus are made to beneficiaries.
    Believe nothing you have not personally researched and verified.

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      #3
      Trust returns

      What should be done to correct the inclusion of income on personal return as opposed to Trust return? Should amended returns be filed to correct it?

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        #4
        Originally posted by taxea View Post
        Was the final 1040 done the year of death? Has the Trustee obtained an FEIN? The Trustee should have changed the SSN's to the EIN with the issuers after death. Why is the Trust still open? No 1041 is required when expenses for the Trust are paid from the trust. Returns are required beginning with the year any distributions of income and/or corpus are made to beneficiaries.


        How should you correct the inclusion of the income in the personal return? should I amend the personal return and put the income on the Trust return?

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          #5
          Your post does not describe how this trust was established. Is it a Revocable Living Trust set up by the taxpayer, your client? If so, nothing needs to be done as the income is properly reported on the TP's tax return and no trust return need be filed. It is treated as a disregarded entity. If it was an RLT set up by another person who is now deceased, or if it was a trust that was directed by the deceased's will, then that is another matter. Although if your client has been receiving all the income since 2015, the end result might not be much different. They may have lost out on some expenses which the trust would have deducted and reported more income than they should, but it may be negligible. Please clarify.
          Last edited by Burke; 04-24-2018, 09:01 AM.

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