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?

kd0imh · ‎June 4, 2019

The trust has its own EIN.

tagteam · ‎June 4, 2019

"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 · ‎June 4, 2019

Thanks. There was no interest or other income in the trust in 2016. Must I complete a Form 1041?

tagteam · ‎June 4, 2019

You are welcome. You do not need to complete a 1041 unless the trust has taxable income or gross income of $600 or more.

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