My client gave me a 1099-R with an Identification number rather than a social - I then noticed that instead of the client's name, it was a Trust account. Can I still record it on the 1040 along with other 1099-R's?
-
-
Trust
You'll need to ask the client questions about the trust.
If it is a revocable living trust, then it is probably a grantor trust, which means that it is a disregarded entity, and income of the trust is reported directly on the individual tax return of the grantor. But you can't make this assumption without getting additional information.
If the trust has its own EIN, it may well be required to file Form 1041.
In some cases, you can't reach any conclusions until you have read the trust agreement and/or talked with the attorney who set up the trust.
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.
Comment