Skip to main content
Level 2
April 22, 2021
Solved

How to make trust not liable to pay taxes on income?

  • April 22, 2021
  • 3 replies
  • 15 views
Trust should not pay taxes flow through entity.
This topic has been closed for replies.
Best answer by sjrcpa

Distribute the income to the beneficiaries in a timely manner. Then it will be shown on their K-1s and taxed to them.

Capital gains are generally corpus and taxed to the trust. 

3 replies

abctax55
Level 15
April 22, 2021

Were there distributions to the beneficiaries?

HumanKind... Be Both
sjrcpa
sjrcpaAnswer
Level 15
April 22, 2021

Distribute the income to the beneficiaries in a timely manner. Then it will be shown on their K-1s and taxed to them.

Capital gains are generally corpus and taxed to the trust. 

The more I know the more I don’t know.
ENairneAuthor
Level 2
April 24, 2021

Thanks exactly the answer I was looking for

Just-Lisa-Now-
Intuit Community Champion
April 22, 2021

1041, Page 2, Sch B, Line 9  is where you would enter the amount that was distributed to the beneficiaries to get the income to flow to their K-1s

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪