David Posted April 6, 2009 Report Share Posted April 6, 2009 Well I must be getting brain fry. TP is required to file a tax exemption trust income tax return. Income is required to be distributed to the beneficiary who is a surviving spouse. The only income is $400 for storage fees- she rents space for people to store their collectible cars. The K-1 is showing all of the $400 as taxable to the TP. Shouldn't $100 be the amount that is taxable income on the K-1? Doesn't she get the benefit of the $300 exemption? Thanks. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 6, 2009 Report Share Posted April 6, 2009 Did you check the box for 'Simple Trust' upper left corner of page 1? That should put the $300 exemption on line 20. Is DNI populating? Quote Link to comment Share on other sites More sharing options...
David Posted April 7, 2009 Author Report Share Posted April 7, 2009 Did you check the box for 'Simple Trust' upper left corner of page 1? That should put the $300 exemption on line 20. Is DNI populating? Yes, I checked the box for simple trust and it is populating DNI. I thought the $300 exemption would reduce the TP's taxable income on the K-1 but I guess the exemption is only for the trust. Thanks. Quote Link to comment Share on other sites More sharing options...
DonnaA Posted April 8, 2009 Report Share Posted April 8, 2009 Your second thought is correct. The exemption applies only to the trust. Quote Link to comment Share on other sites More sharing options...
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