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Posted by jo on November 3, 2007, 6:11 pm
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When one establishes a Revocable Trust to shield assets from
probate, what ramifications, if any, are there for tax
preparation? Does a tax return of any kind have to be filed
for the trust? Would I still file a 1040?
jo
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Posted by Stuart A. Bronstein on November 4, 2007, 7:33 am
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> When one establishes a Revocable Trust to shield assets from
> probate, what ramifications, if any, are there for tax
> preparation? Does a tax return of any kind have to be filed
> for the trust? Would I still file a 1040?
A revocable trust is completely transparent for tax
purposes. In other words it's treated as though it doesn't
exist. You continue to file your 1040 and the trust files
nothing, as long as it is revocable by you.
Stu
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Herb Smith on November 4, 2007, 7:33 am
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> When one establishes a Revocable Trust to shield assets from
> probate, what ramifications, if any, are there for tax
> preparation? Does a tax return of any kind have to be filed
> for the trust? Would I still file a 1040?
For tax purposes the trust does not exist as a separate
entity while you are alive. File your normal 1040, including
all income received through the trust. The trust DOES NOT
file a separate return and does not need an EIN (uses your
SSN).
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Benjamin Yazersky CPA on November 4, 2007, 7:33 am
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> When one establishes a Revocable Trust to shield assets from
> probate, what ramifications, if any, are there for tax
> preparation? Does a tax return of any kind have to be filed
> for the trust? Would I still file a 1040?
The filing requirement for the 1041 are independent of the
filing requirements for the 1040.
Each stands on its own.
Generally, the filing requirement depends on income.
Remember to also check the state filing requirements for the
individual and trust tax returns.
Each state has its own rules.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by ed on November 4, 2007, 7:33 am
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> When one establishes a Revocable Trust to shield assets from
> probate, what ramifications, if any, are there for tax
> preparation? Does a tax return of any kind have to be filed
> for the trust? Would I still file a 1040?
It's still a 1040 with donor's SS# UNTIL the first grantor
dies. specifically do not file a 1041.
ed
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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