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Thanks for the reply. Yes, the trust has its own EIN. IRS instructions are clear on most points, but not so much on the few questions I raised. Restated:
1. A 1041 needs to be filed and it needs to report income on its Grantor Information Statement, but no taxes are due with it. Rather the income is also reported on the grantor's 1040 which is where taxes are paid. Sound right?
2. Instructions say 1041 should report transactions in the same detail as in the 1040, but to not use IRS schedules B, C, D, E, etc. So just freeform on the Grantor Information Statement, all the gory details that also appear on the 1040's IRS schedules? Seems very odd.
3. Any need in the grantor's 1040 to identify income and deductions from trust assets? Some investment properties moved into my grantor trust mid-year, so wondering if I should have separate schedule E's for personal vs. trust activity.