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TRUST IS USING GRANTOR'S SOCIAL SECURITY NUMBER FOR TAX ID, HOW DO I PUT THAT IN THE FIDUCIARY INFORMATION WORKSHEET

jeffhansen
Level 2
 
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BobKamman
Level 15

What part of 

Generally, if a trust is treated as owned by one grantor or other person, the trustee may choose Optional Method 1 or Optional Method 2 as the trust's method of reporting instead of filing Form 1041.

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8 Comments 8
George4Tacks
Level 15

Just input on the Grantors 1040.

 


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BobKamman
Level 15

Are they doing that because it's a grantor trust with all income reported on the beneficiary's 1040?  Then you don't need to file a Form 1041.  See Pages 13-14 of the Instructions. 

jeffhansen
Level 2

If I am understanding this correctly, we would file an informational 1041 with no income reported and no K-1 issued to the grantor, I would input the information directly onto the grantor's 1040 like any other investment income, etc.?

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jeffhansen
Level 2

If I am understanding this correctly, we would file an informational 1041 with no income reported and no K-1 issued to the grantor, I would input the information directly onto the grantor's 1040 like any other investment income, etc.?

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BobKamman
Level 15

What part of 

Generally, if a trust is treated as owned by one grantor or other person, the trustee may choose Optional Method 1 or Optional Method 2 as the trust's method of reporting instead of filing Form 1041.

did you not understand?

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jeffhansen
Level 2

did I misinterpret Option 1 - thought it was saying to do an information only 1041, putting the income information on the grantor's 1040.    Are you saying not to do the 1041 at all?

Thank you for your help

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George4Tacks
Level 15

No 1041. All of my personal assets are in the trust name, but my SSN. As long as the Trustee, Trustor and Beneficiary are all the same, we just do the 1040. When one of us (I am married) dies, then the 1041 kicks in and we will need a new EIN for the trust because of the death of a Trustor.

 


Here's wishing you many Happy Returns
jeffhansen
Level 2

the only difference in this case is that the grantor is not the trustee, the trust was set up to protect the money in case of medicaid look back in a few years.

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