TP created trust with a $1.00. TP died everything went to trust to bypass probate. Every thing in trust converted to cash and paid out to heirs according to trust aggrement. On form 1041 can I make a 645 election? Makes a difference in filing date as a trust would be on cal year where I could use a fiscal year. What is your opinion?
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The first question that needs to be answered is "TP created trust with a $1.00". If assets were not transferred to trust they have to go through Probate and an Estate tax return needs to be filed. -
Yes, you can make the election. The election combines the trust and the estate into one entity for reporting purposes.
Instructions for Form 8855:
The trustees of each qualified revocable trust (QRT) and the executor of the related estate, if any, use this form to make a section 645 election. This election allows a QRT to be treated and taxed (for income tax purposes) as part of its related estate during the election period. Once the election is made, it cannot be revoked.Comment
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