Tax issues with 1099-Misc issued to a trust

[ljinit]

If properties are placed in a trust, should the rental management company issue a 1099-Misc to the trust or to the person reporting the income? 

If a 1099-Misc is issued to a trust, could this create an obligation for a 1041? 

[Anonymous_]

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@ljinit wrote:

If a 1099-Misc is issued to a trust, could this create an obligation for a 1041? 

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Yes, assuming the income exceeds the threshold for filing (which is very low). This would also assume that the property management company was given the EIN of the trust.

[ljinit]

Thanks, if the W-9 has the name of the trust but the social of the taxpayer, would this create any issue?

[Anonymous_ · Accepted solution]

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@ljinit wrote:

Thanks, if the W-9 has the name of the trust but the social of the taxpayer, would this create any issue?

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Is this a grantor trust? If so, and the trust uses the SSN of the grantor, then the trust is treated as a disregarded entity for federal income tax purposes and the income would be reported on the individual income tax return of the grantor.