topic revocable living trust bought Utah rental property, does the trust need to file a Utah state return? in Get your taxes done using TurboTax

revocable living trust bought Utah rental property, does the trust need to file a Utah state return?

croonerguy — Wed, 31 Mar 2021 17:28:01 GMT

Re: revocable living trust bought Utah rental property, does the trust need to file a Utah state ...

DMarkM1 — Wed, 31 Mar 2021 17:37:08 GMT

It depends. If the grantor is still living the Internal Revenue Service views a revocable trust as a grantor’s trust and, therefore, not a separate entity. The income from a revocable trust is not reported separately; instead, it must be reported on the grantor’s personal tax return.

If the grantor has passed then the Trust will file a form 1041 reporting the rental property.

Re: revocable living trust bought Utah rental property, does the trust need to file a Utah state ...

croonerguy — Wed, 31 Mar 2021 17:57:49 GMT

Mark,

Thank you for your response. My wife and I are the trustees (grantors?), no one involved with the trust is yet deceased. We have had this trust since 2016 with the sole purpose of holding real estate previously in CA & WA.

We live in CA and file no state trust return as all income is passed through and reported on Individual federal and CA state returns. WA need not file any trust or individual returns as there is no income tax in WA. In 2020 we added property in UT. TurboTax Business program is advising that a UT state return is required, but does not provide one?

I am currently on phone-hold with UT State Tax Commission.

Re: revocable living trust bought Utah rental property, does the trust need to file a Utah state ...

DMarkM1 — Wed, 31 Mar 2021 18:21:52 GMT

On your individual joint return in the "My Info" section you should select that you earned income in another state and select UT. That will generate a UT return where you can allocate any rental/property income to UT as needed. If there are any taxes paid to UT you can get a credit for taxes paid to other states on your CA return. That will be in the CA credit interview.

Re: revocable living trust bought Utah rental property, does the trust need to file a Utah state ...

Anonymous_ — Wed, 31 Mar 2021 19:58:18 GMT

@croonerguy wrote:
TurboTax Business program is advising that a UT state return is required, but does not provide one?

Are you using the TurboTax Business program to file a 1041?

If you have a grantor type trust, you do not need to file a 1041 unless you choose to do so (after having applied for and received an EIN). As @DMarkM1 indicated, the trust is disregarded for federal income tax purposes.

Regardless, TurboTax Business does not support Utah Fiduciary,

See https://ttlc.intuit.com/community/state-taxes/help/which-states-are-not-supported-in-turbotax-business/00/25580