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kcrheinlander
New Member

My MIL has a revocable living trust that she set up. She is the only trustee. 2018 the trust sold property. Which Turbo Tax should be used for trust and personal use?

Does she need to use Turbo Tax business for the trust and then personal for her individual taxes? ( She receives no "personal" income from the trust. ) All money received goes into the trust checking account.  But she does receive SS personally.
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tagteam
Level 15

My MIL has a revocable living trust that she set up. She is the only trustee. 2018 the trust sold property. Which Turbo Tax should be used for trust and personal use?

"Does she need to use Turbo Tax business for the trust and then personal for her individual taxes?"

Your description indicates that the trust is a grantor trust which is generally disregarded for federal income tax purposes. 

As a result, she can report via one of the optional methods (link below) that do not require filing a Form 1041.

https://www.irs.gov/instructions/i1041#idm139674712735312

View solution in original post

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tagteam
Level 15

My MIL has a revocable living trust that she set up. She is the only trustee. 2018 the trust sold property. Which Turbo Tax should be used for trust and personal use?

"Does she need to use Turbo Tax business for the trust and then personal for her individual taxes?"

Your description indicates that the trust is a grantor trust which is generally disregarded for federal income tax purposes. 

As a result, she can report via one of the optional methods (link below) that do not require filing a Form 1041.

https://www.irs.gov/instructions/i1041#idm139674712735312

View solution in original post

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