FLP-Bees and Jon

[Acownt4it]

You both helped me out with my initial question when my client was forming his FLP. Thank you again for that, you knowledge is indespensible.

I will be filing a gift tax return and a partnership return.

There are 4 children and 9 grandchildren that will be receiving a limited interest in the FLP.

Should I file a Trust Return for the each of the Irrev. Trusts to establish basis for future scrutiny by the IRS?

All of the Irrev. Trusts have EINs. The FLP was formed in December 2005, so there is no income to report.

[Bees Knees]

Irrevocable trusts must file Form 1041 if gross income is $600 or more, or there is any taxable income. You don't have to file a return for a trust just to establish basis. File if required for tax purposes. Otherwise the trust documents are enough.

[Acownt4it]

Thanks Again

I appreciate the help