Does not specify what happens to the original trust. If it becomes irrevocable because the grantor died, what type of win do the trustees need to file for and whose information goes in the ein application.
Jason, this was probably the only explanation of a Grantor Trust that was complete and articulated how to fill out the 1041! Thank you. My question is where on the 1040 do I report the income (probably nothing for expenses?). Do I create a K1 (since the 1041 won't generate one) on the Personal Return or just show the income on Schedule B (for Interest and Dividends) or Schedule D (for Gains and Losses)?
Thank you Jason for a comprehensive explanation of 1041 Grantor trust filing. But I notice you left the calendar year blank. Is that because the filing is an initial return?
I am the trustee of my mother's trust. She passed about a year ago. I did get an EIN number for the trust, and plan on filing a 1041 on my tax return shortly. From the time of my mother's death till the time that the monies were cashed out and sent to the beneficiaries (myself and 2 syblings), there was a loss. IE some of it was in stocks-the money went from 150k to 145K. So there was a capital loss of 5K. Can this loss be shown on the 1041 that I file on my taxes? Also, how does the K-1 play into this situation-do I file K-1, or the 3 beneficiaries? Thx so much for taking my question
What about if the trust is a self-directed IRA trust with its own EIN used only to open a bank account? Does it still have to file an informational 1041 return? Have you done a video on that particular subject?
As I understand when the grantor dies the Trust is required to apply for a new EIN. Is that correct? In this case, did the Trust fill one or two 1041 in that year?. One final as a grantor Trust and one initial as an irrevocable Trust?
Jason, thank you for creating this informative video. My mother died Oct. 2022, she had no stocks, bonds or money. The only asset she owned was a homesteaded house. I registered and received an EIN, opened a bank account with the EIN. I have been paying house expenses and repairs with my own money. The house is under contract and the closing is scheduled for Jan. 2023. Do I need to file a 1041for 2022 tax year or not until 2023? TIA
Jason For estate intestate My dad passed August 2021. I didn't get an EIN and account until March 2022. Whatever the attorney did, it made filing for 1041 deadline as April of 2023 now? Nothing was sold from the estate in 2021 and nothing distributed. So did I need to file an initial 1041 for 2021 for zero dollars? And then do I need to file another final1041 for the this tax year to show dad's house selling while in probate to pay the debts? After estate closes in probates
Good question! It is not required to have grantor in the trust name if you want to make a grantor trust for tax purposes. What's most important is the terms of the trust agreement..
Father is single pass away and leave $50k in the bank account for single son to claim, attorney get estate ID, any suggestion how to fill out form 1041 ? Thanks
This depends upon too many variables, so it is difficult to answer in the abstract. Generally, a U.S. decedents estate must file a Form 1041 if the estate has gross income in excess of $600 for the tax year. If you need some assistance with preparing Form 1041, please email us at: info@knottpllc.com
I enjoyed your video. We mistakenly used a separate EIN for a grantor trust and realized our mistake when we filed our taxes for 2020. We changed the tax ID for accounts from the EIN back to a personal SSN. Is the 1041 we file for 2021 the "final" 1041 for the trust, or do we just stop filing a 1041 after this year? Thank you.
I have a Estate 87 ein and a 98 ein for just fill out the 1041 this year just like u said and leave the rest blank im working on 706 and maybe 709 this is my first year do we just fill out the basic information and leave the rest of the forms blank ? For estate and trustee 98 1041 ? Plus I have a sole proprietor ship so I have an 84 ein for that so im assuming I have to do a Self employed return or just do estate and trust cuz it will cover all the other Tins under the control name ?
A grantor trust can become an irrevocable trust in a number of different ways. Typically it becomes irrevocable once the grantor dies. The trust can also become irrevocable if the grantor becomes incapacitated.
@@f.puttstycker2784 It is potentially fraud if someone knowingly files a false statement or return with the IRS. Consult with legal counsel to explore your options
Does not specify what happens to the original trust. If it becomes irrevocable because the grantor died, what type of win do the trustees need to file for and whose information goes in the ein application.
Jason, this was probably the only explanation of a Grantor Trust that was complete and articulated how to fill out the 1041! Thank you. My question is where on the 1040 do I report the income (probably nothing for expenses?). Do I create a K1 (since the 1041 won't generate one) on the Personal Return or just show the income on Schedule B (for Interest and Dividends) or Schedule D (for Gains and Losses)?
Thank you Jason for a comprehensive explanation of 1041 Grantor trust filing. But I notice you left the calendar year blank. Is that because the filing is an initial return?
Thank You for the informative info! Before I go K-one Scrolling on TH-cam, have you already done a video on filling out a K-1form?
Not yet! We are currently working on a 1041 and K-1 tutorial
I am the trustee of my mother's trust. She passed about a year ago. I did get an EIN number for the trust, and plan on filing a 1041 on my tax return shortly. From the time of my mother's death till the time that the monies were cashed out and sent to the beneficiaries (myself and 2 syblings), there was a loss. IE some of it was in stocks-the money went from 150k to 145K. So there was a capital loss of 5K. Can this loss be shown on the 1041 that I file on my taxes? Also, how does the K-1 play into this situation-do I file K-1, or the 3 beneficiaries? Thx so much for taking my question
What about if the trust is a self-directed IRA trust with its own EIN used only to open a bank account? Does it still have to file an informational 1041 return? Have you done a video on that particular subject?
As I understand when the grantor dies the Trust is required to apply for a new EIN. Is that correct? In this case, did the Trust fill one or two 1041 in that year?. One final as a grantor Trust and one initial as an irrevocable Trust?
Jason, thank you for creating this informative video. My mother died Oct. 2022, she had no stocks, bonds or money. The only asset she owned was a homesteaded house. I registered and received an EIN, opened a bank account with the EIN. I have been paying house expenses and repairs with my own money. The house is under contract and the closing is scheduled for Jan. 2023. Do I need to file a 1041for 2022 tax year or not until 2023? TIA
Jason
For estate intestate
My dad passed August 2021.
I didn't get an EIN and account until March 2022.
Whatever the attorney did, it made filing for 1041 deadline as April of 2023 now?
Nothing was sold from the estate in 2021 and nothing distributed.
So did I need to file an initial 1041 for 2021 for zero dollars?
And then do I need to file another final1041 for the this tax year to show dad's house selling while in probate to pay the debts? After estate closes in probates
Is it necessary to title your trust grantor trust ? Or is this just an example. My trust doesn't include grantor trust at the end.
Good question! It is not required to have grantor in the trust name if you want to make a grantor trust for tax purposes. What's most important is the terms of the trust agreement..
@JasonDKnott thank you, so much
Father is single pass away and leave $50k in the bank account for single son to claim, attorney get estate ID, any suggestion how to fill out form 1041 ? Thanks
This depends upon too many variables, so it is difficult to answer in the abstract. Generally, a U.S. decedents estate must file a Form 1041 if the estate has gross income in excess of $600 for the tax year.
If you need some assistance with preparing Form 1041, please email us at: info@knottpllc.com
I enjoyed your video. We mistakenly used a separate EIN for a grantor trust and realized our mistake when we filed our taxes for 2020. We changed the tax ID for accounts from the EIN back to a personal SSN. Is the 1041 we file for 2021 the "final" 1041 for the trust, or do we just stop filing a 1041 after this year? Thank you.
The "Final" return box is generally only selected if the trust or estate has terminated.
I have a Estate 87 ein and a 98 ein for just fill out the 1041 this year just like u said and leave the rest blank im working on 706 and maybe 709 this is my first year do we just fill out the basic information and leave the rest of the forms blank ? For estate and trustee 98 1041 ? Plus I have a sole proprietor ship so I have an 84 ein for that so im assuming I have to do a Self employed return or just do estate and trust cuz it will cover all the other Tins under the control name ?
Hello Jason D. Knott hope all is well. Would like to consult more with you on this matter.Thanks
Thank you for watching! If you need help with any tax issues related to trusts, please email our office at: info@knottpllc.com
Can an entity date of creation be changed to before the grantor died? I'm thinking it's no!
A grantor trust can become an irrevocable trust in a number of different ways. Typically it becomes irrevocable once the grantor dies. The trust can also become irrevocable if the grantor becomes incapacitated.
@@JasonDKnott Thanks for replying! What if i know that someone lied to irs on an entity created date (back dated)?
@@f.puttstycker2784 It is potentially fraud if someone knowingly files a false statement or return with the IRS. Consult with legal counsel to explore your options