topic Special Needs Trust definition of distribution to beneficiary in Deductions & credits

Special Needs Trust definition of distribution to beneficiary

shakayee — Fri, 10 Apr 2020 21:08:34 GMT

My disabled daughter has a special needs trust and I have recently taken over as trustee.

She does not qualify for rental assistance from programs such as HUD Section 8 as she rents from a close relative

The trust pays her rent to her landlord. Is this a distribution for Schedule K-1?

Re: Special Needs Trust definition of distribution to beneficiary

MarilynG1 — Fri, 10 Apr 2020 21:34:29 GMT

You can file a Form 1041 for your daughter's disability trust through TurboTax Business.

Click this link for more info on reporting for a Qualified Disability Trust.

Re: Special Needs Trust definition of distribution to beneficiary

shakayee — Fri, 10 Apr 2020 22:27:12 GMT

Thank you. I am aware that I need to file a 1041 trust return. My question is specifically about the definition of a 'distribution' for schedule K-1 purposes. Any idea where I can get a definition of even some examples?

Re: Special Needs Trust definition of distribution to beneficiary

MarilynG1 — Fri, 10 Apr 2020 22:42:39 GMT

Click this link for info on Special Disability Trusts that may help you.

Re: Special Needs Trust definition of distribution to beneficiary

shakayee — Sat, 11 Apr 2020 15:27:49 GMT

Thank you so much for finding this link - it answers my question and has examples