Does a trust beneficiary who receives only portfolio income need to file p.2 of Schedule E with the name and EIN of the trust? I always thought they did, but I just noticed that my software doesn't even fill out a Schedule E in that case.
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Evan Appelman, EA -
Schedule K-1
If all of the income is reflected on lines 1 through 4 on the Schedule K-1, then it appears that Schedule E is not required. The beneficiary's instructions for Schedule K-1 advise the taxpayer to report the income directly on Form 1040, lines 8 and 9, or on Schedule D.
In other words, the trust only needs to be identified on Schedule E if there is income from the trust that is reported on Schedule E.
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process.
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