sjrcpa
Level 15
01-31-2024
09:33 AM
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1. It's not a gift. The initial transfer to the trust by the settlor was a gift to the beneficiary(ies).
2. Income tax wise, a distribution is only taxable and will only appear on the K-1 to the extent of Distributable Net Income of the trust. The income distribution deduction is calculated on page 2 of the 1041.
The more I know the more I don’t know.