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jlsqrd
New Member

If I pay the tax bill for a trust, does the trust need to report that as income?

I am the trustee of a trust for my kids and have been filing the 1041s and paying the tax bills (not large) out of pocket.  Does the trust need to report that as income?

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Accepted Solutions

If I pay the tax bill for a trust, does the trust need to report that as income?

" Does the trust need to report that as income?"

No, the payment of any trust expenses out of your own pocket would be considered a gift to the beneficiaries.

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1 Reply

If I pay the tax bill for a trust, does the trust need to report that as income?

" Does the trust need to report that as income?"

No, the payment of any trust expenses out of your own pocket would be considered a gift to the beneficiaries.

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