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Tax Law (Questions About Taxes)/Irrevocable Living Trust Grantor income reporting

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Question
Grantor living trust issued a statement (not k1) showing dividend/interest income with Grantors name and SSN.  Letter from trust says to give to Grantor to report on personal return.  Trust has a separate EIN.  Financial institution 1099 reported this income with trust EIN.  Does Grantor when reporting this income on form 1040, schedule B, report Financial institution and their EIN as the payer or the trust and their EIN as payer.  Fiduciary is not the same as Grantor.

Thank you

Answer
Report the financial institution as the payer.

The EIN for the trust is just an extension of the grantor, like any pass-through/Sole Proprietor (you can get a separate EIN for a SoleProp).

Naming the Trust would just cycle it back to the Grantor. Not that it couldn't be unraveled by the IRS, but . . .  

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Richard Fritzler

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Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.

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I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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National Small Business Owners Association.
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Contributing author to "The Corporate Standard Newsletter".


Publications
Contributing author to "The Corporate Standard Newsletter".
Ezinearticles.com articlesbase.com

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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