schirallicpa Posted March 31, 2023 Report Share Posted March 31, 2023 I'm not sure if this is a dumb question or if I just need to go home and go to bed. This year is the initial return showing a loss. But - do I need a K1? And does the K1 go to the child that the trust is for? Or is it the trustee who is handling the trust for him? Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 31, 2023 Report Share Posted March 31, 2023 USUALLY THE trust pays any taxes and no K1 is needed. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 1, 2023 Report Share Posted April 1, 2023 4 hours ago, schirallicpa said: showing a loss. But - do I need a K1? There would be a K-1 if taxable income was distributed. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 1, 2023 Report Share Posted April 1, 2023 K1 always goes to the beneficiary. Payments of nondeductible expenses are considered distributions to the beneficiary. But if you have a loss, there will be no numbers on the K1. 2 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 2, 2023 Author Report Share Posted April 2, 2023 This tax season has been taxing - Thank you guys! 1 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 4, 2023 Report Share Posted April 4, 2023 Payments of nondeductible expenses are considered distributions to the beneficiary, but need not be from income. Could be from corpus; depends on trust document. IIRC, distributions of corpus don't get listed on a K-1. Please correct me if my memory is faulty! 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 4, 2023 Report Share Posted April 4, 2023 2 hours ago, Catherine said: , distributions of corpus don't get listed on a K-1 Correct. Only distributions of taxable income. Trust takes income distribution deduction for same amount. 4 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 4, 2023 Report Share Posted April 4, 2023 Thanks, @DANRVAN for confirming that in this instance my memory was not faulty. Quote Link to comment Share on other sites More sharing options...
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