I received a distribution from a trust -- is it TAXABLE?!
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- เผยแพร่เมื่อ 22 ก.พ. 2020
- In this video, Alexander Efros, MBA, EA, CPA, CFP® from Efros Financial answers a tax question from Reddit.
Efros Financial is a Los Angeles-based CPA firm providing financial planning and tax preparation/resolution services.
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This is great I've been searching for a video like this for months. I'm overwhelmed lol
Very helpful! Thank you so much!!
Good explanation thanks
Outstanding presentation well delivered in plain language for the tax ignorant to understand. Very very well done!!! Thank you.
Thank you for your kind words -- glad it was helpful!
Well done. Thx.
Excellent presentation. Very helpful. Thank you
Thank you for watching -- much appreciated! Glad it was helpful. :D
Alex, thanks for your informative video. I had a simple question about a blank K-1 form I received as a beneficiary. I think your comments at 8:14 regarding a blank form which is OK if there was no taxable income and the idea for the form preparer to include a note to indicate corpus or principal distribution only is a great idea. Thank you.
Excellent overview and I want to know if I can hire you for Forensic accounting analysis of the Trust of which I'm a Beneficiary....?
Hello how would one go about the scenario where a beneficiary refuses to share his SS #?
Question: If the trust already handled the tax burden of the income isn't the beneficiary exempt? I'm the trustee of a testamentary trust (from my deceased mother's will) for my sister who has alzheimer's. All the money is to go for my sister's care. I'm required to distribute any income to her (have distributed more than that this year) and the account actually ran at a loss. I filed the 1041 and took on that income burden. So this shouldn't be double taxed should it? Am I making sense? Thanks!
Do you need to file 1041 if you have a grantor trust?
Hi Efros. Question, I am the Executor of an estate that is in probate pending a law suit .The estate is less than $600. for now but may acquire a settlement later. Am I required to file a 1041 each year until the estate settlement ?
I am the trustee of my mother's trust. She passed away at end of 2021. From the date of her death until the date that her stocks, bonds, etc were cashed out, there was a loss. IE she had 125,000 that went down to 120,000. As I understand it, this was a "capital loss", which can be shown on the 1041 form. Is this correct? Also, as the trustee, do I have to generate the K-1's for the beneficiaries. Myself and 2 syblings are the beneficiaries. Or is is possible to show the capital loss on just one K-1 form on the 1041, which I plan on doing on my up-coming taxes. Again, I am the trustee and one of the 3 beneficiaries. Thx!
I have a simuilar cituation and wondering what you have done? But the k1 doesn't show capital losses does it? I only see a place for interest and dividen income. What am I missing? Thanks! Would that be under deductions?
Same questions since tax preparers too unavailable or unwilling to file final tax returns.
I as successor trustee for my late father's trust opened a trust checking acct at US Bank. The title of the account is the name of the trust, but on the checks only my name is listed. It looks like a personal account like the check mentioned in your example. Not sure why the checks were printed this way.
Wish I would’ve found this video last spring. We got hit with a k-1 from inherited trust money (after thinking we wouldn’t owe any taxes, after all it’s inheritance, and inheritance isn’t taxed, right?) Wrong! We know all about it now. Had to file an amended return at the last minute because we had already e-filed early in the tax season and received a refund. Well, we gave that money back to Uncle Sam… and much more! Good problem to have, I guess. As of today’s date (March 10, 2022), the IRS STILL HASN’T PROCESSED THAT AMENDED RETURN from the 2020 tax year. We paper filed, and they are way behind. Of course, the sizable payment check was cashed right away. IRS website says it was ‘received and forwarded for processing’. Wow 🤦🏼♀️
I'm in your situation............so much for inheritance.......the Government (IRS) is gonna take a HUGE amount as I have to claim it as income (the amt. on the K-1). Inheritance only exists for the Internal Revenue Service.
@Efros - Same person is both Executor of Estate and Trustee of a Trust at death of surviving spouse. Trust ends at surviving spouse’s death with Trust assets being distributed among survivor’s daughter and 5 grandchildren. Should 2 checking accounts be setup? One for Estate distributions and one for Trust distributions? ThankU.