Trusts - Spidell


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Message Board Trusts

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    • #298215
      Larry Gurewitz

      My client gets a K1  for an,  Irrevocable Trust FBO her name.  Then she gets a Grantor statement of tax items.  At the bottom it says
      The income, deductions and credits are to be reported on the federal income tax return of the above name grantor, if required.
      How do I deal with this situation.  From what form do I enter the information into her 1040?</div>

    • #298330
      David Ellis

      I assume you are talking about 2 seperate trust….grantor trust are ignored for income tax purposes and the income is reported on the 1040 of the grantor. Irrovocable trust generally issue k1s to the beneficiaries to the extent that the trust had income and distributions were made to the beneficiaries…….however capital gains may be treated differently depending on the terms of the trust.

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