Level 3

Question

Living Trust

Forum|Forum|4 years ago
April 4, 2022
3 replies
21 views

Greetings -

I have a question. I have a client that is now involved in a living trust. The trust has activity similar to a K1 Partnership. The living trust is in the client's & wife's name. The ID number is under the client's SS number.

My question is how I report the following types of income:

1) Ordinary

2) Rental

3) Dividends

4) Interest

5) ST Cap Gains

6) LT Cap Gains

The structure of this follows that of a K1 Partnership. Do I enter these items manually into the return, or enter it on a platform like the Partnership K1?

Thank you,

ProSeries Professional

This topic has been closed for replies.

utah-arizona-taxlady

Level 6

Everything on a Living Trust (sometimes called a Revocable Trust) go onto the owner's personal tax return. The trust comes into play when the grantor(s) die.

Intuit Community Champion

Intuit Community Champion

it follows the SSN on the K-1, thats the return it goes on.

Fill out the K-1 worksheet n the program, it will put everything where it goes.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

mschmidtcpaAuthor

Level 3

Thank you,

I tried entering the SS number on the K1, but it errored out.

Can you make a suggestion on what type of K1 to use? Is there any special method to get the SS # to be accepted?

Thank you

Level 10

There is no K1.

THERE IS NOT K1- THE TRUST IS INVISIBLE TO THE IRS

Pretend the name on the paper didn't say trust, and just had the clients name and enter it that way.

Interest and Dividends on Schedule B etc. everything else wherever it goes.

Level 10

There should be no K-1. The Trust should be transparent for tax purposes so long as the grantor is still alive.

Ignore the trust, Everything goes on the 1040 just like it did before.

Intuit Community Champion

Intuit Community Champion

DUH, your right....OMG, is this tax season over yet?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Level 10

Not Quite.....