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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] How do trust income/losses get reported? Posted by Erick on May 22, 2003 at 7:51 PM I'll be setting our first trusts this year but want to make sure I know how to handle the taxes beforehand. How is the IRS informed about the income or losses that a trust is entitled to. For example, if a property is in a trust that has paper losses for tax purposes, how does this flow through to the beneficiary's 1040? I believe that the beneficiary just reports it on his own 1040 (and sched E?). Now, that's just if there is a single beneficiary. To make it a little more interesting, some of our properties that are in trusts have a 3 member LLC as the beneficiary. Does the trustee send give the LLC a 1099 or something like that? Does it matter whether or not the trust has it's own taxpayer ID? Now, what if there are 3 different beneficiaries (as opposed to an LLC as the beneficiary)? Do all of these scenarios make sense? Are there different treatments for each?? Thanks a lot. Follow Ups: Use a partnership return. Ward-CA 8:34 AM, 05/23/03 (2) Re: Use a partnership return. Erick 2:51 PM, 05/23/03 (1) You've got it (nt) Ward-CA- 8:44 PM, 05/23/03 (0) Would Like To See Ward Answer This Too SeanW 8:07 PM, 05/22/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I'll be setting our first trusts this year but want to make sure I know how to handle the taxes beforehand. How is the IRS informed about the income or losses that a trust is entitled to. For example, if a property is in a trust that has paper losses for tax purposes, how does this flow through to the beneficiary's 1040? : I believe that the beneficiary just reports it on his own 1040 (and sched E?). : Now, that's just if there is a single beneficiary. To make it a little more interesting, some of our properties that are in trusts have a 3 member LLC as the beneficiary. Does the trustee send give the LLC a 1099 or something like that? Does it matter whether or not the trust has it's own taxpayer ID? : Now, what if there are 3 different beneficiaries (as opposed to an LLC as the beneficiary)? Do all of these scenarios make sense? Are there different treatments for each?? : Thanks a lot. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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