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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1 Best answer

Level 15

Jun 1, 2019 11:16:41 AM

"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

Level 15

Jun 1, 2019 11:16:41 AM

"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

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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?