Trusts
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Trusts A revocable trust for a single person usually has no FID so it uses the Social Security # and does not need a 1041. All income reports on the 1040 individual return. Linda W. Pointe players Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone -------- Original message -------- From: "Mike Jones via bivio.com" <user*21595500001@bivio.com> Date:12/11/2015 11:34 AM (GMT-05:00) To: club_cafe@bivio.com Cc: Subject: [club_cafe] Re: Trusts 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.) |
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