I'm trustee of a complex irrevocable trust for my special needs son. We put $500 and someone else put $2,000 in the trust in 2016. Is this considered Income on the 1041?
The trust has its own EIN.
03531
1 Best answer
tagteam
Level 15
Jun 4, 2019 4:47:00 PM
"Is this considered Income on the 1041?"
No, that is considered a contribution (i.e., funding the trust) and becomes part of the corpus (principal) of the trust.
It is not income.
3 Replies
tagteam
Level 15
Jun 4, 2019 4:47:00 PM
"Is this considered Income on the 1041?"
No, that is considered a contribution (i.e., funding the trust) and becomes part of the corpus (principal) of the trust.
It is not income.
kd0imh
New Member
Jun 4, 2019 4:47:02 PM
Thanks. There was no interest or other income in the trust in 2016. Must I complete a Form 1041?
tagteam
Level 15
Jun 4, 2019 4:47:03 PM
You are welcome. You do not need to complete a 1041 unless the trust has taxable income or gross income of $600 or more.