Trusts - Allowed or ...
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Trusts - Allowed or ... Revising our bylaws. The ongoing dialog about trusts concerns me with complexity of issues. I would prefer to recommend that the bylaws forbid partners from titling in individual trusts. 1) is there recommended language for such a provision? 2) I prefer to keep the treasurer's processes uncomplicated in day to day, annual and tax issues. What are the pros and cons of such a provision? (Understand sole versus joint concerns, but prefer to omit trust concerns altogether.) If a partner titles his/her share in the name of a trust, the club's K-1 will reflect the name of the trust. Then it becomes the responsibility of the trustee to handle tax reporting. If the trust is revocable, income is taxed as personal income and the trustee must complete a small identification section of Form 1041 and file it, but does not have to report trust income. If the trust is irrevocable, the trustee must file Form 1041 to report trust income, as long as the trust earned more than $600 during the tax year. I am wondering how many people who name a trust as owner of their partnership share are handling this properly. Mike Jones Wall$treet Wannabees From: Irina Clements <irina39@verizon.net> To: club_cafe@bivio.com Sent: Friday, December 11, 2015 6:23 AM Subject: [club_cafe] Trusts - Allowed or ... Revising our bylaws. The ongoing dialog about trusts concerns me with complexity of issues. I would prefer to recommend that the bylaws forbid partners from titling in individual trusts. 1) is there recommended language for such a provision? 2) I prefer to keep the treasurer's processes uncomplicated in day to day, annual and tax issues. What are the pros and cons of such a provision? (Understand sole versus joint concerns, but prefer to omit trust concerns altogether.) Don't believe everything you read on the internet, especially tax advice from investment advisors. A revocable grantor trust does not file any part of Form 1041. It uses the tax ID number of the grantor and all income is reported on the grantor's personal income tax return. Ira Smilovitz On Fri, Dec 11, 2015 at 11:34 AM, Mike Jones via bivio.com <user*21595500001@bivio.com> wrote:
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