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kranders
New Member

Estate 1041 distributions

I am filing a 1041 for a simple trust. I would like the trust to pay the taxes on some 1099-R income that has come in. I have distributed the funds. Is there anyway to have the trust pay the taxes (income tax was withheld) and not do the K1s to the beneficiaries?

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Accepted Solutions
tagteam
Level 15

Estate 1041 distributions


@kranders wrote:

I am filing a 1041 for a simple trust. 


A beneficiary of a simple trust includes in gross income for the tax year the amount of income required to be distributed for that tax year, whether or not the income is distributed.

 

See Treas. Reg. §1.652(a)-1

 

Therefore, the basic answer to your question is "No, the beneficiaries will liable for any tax due on their distributions to the extent of distributable net income (DNI), which will be reflected on their K-1s".

View solution in original post

1 Reply
tagteam
Level 15

Estate 1041 distributions


@kranders wrote:

I am filing a 1041 for a simple trust. 


A beneficiary of a simple trust includes in gross income for the tax year the amount of income required to be distributed for that tax year, whether or not the income is distributed.

 

See Treas. Reg. §1.652(a)-1

 

Therefore, the basic answer to your question is "No, the beneficiaries will liable for any tax due on their distributions to the extent of distributable net income (DNI), which will be reflected on their K-1s".

View solution in original post

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