topic Re: Complex Trust - Sec 663b Record Keeping in Retirement tax questions

Complex Trust - Sec 663b Record Keeping

MikeInFL — Sun, 06 Oct 2019 00:00:01 GMT

In understand that if choose the Sec 663b election for a complex trust, I need to check off box 6 in the "Other Information" section of TurboTax.

Do I need to file any supporting schedules with the return? What kind of record keeping is required?

Re: Complex Trust - Sec 663b Record Keeping

Anonymous_ — Sun, 06 Oct 2019 01:19:05 GMT

@MikeInFL wrote:
Do I need to file any supporting schedules with the return? What kind of record keeping is required?

The 663(b) election statement is generated automatically by TurboTax Business (see screenshot below).

With respect to record keeping, you might want to retain any financial statements that show a withdrawal, the date and amount of that withdrawal, and the payment to the beneficiary (whether by check, electronic transfer, etc.).

Re: Complex Trust - Sec 663b Record Keeping

MikeInFL — Sun, 06 Oct 2019 05:40:41 GMT

Thanks for the reply.

I just checked my recently filed Trust return for 2018. Even though I have the boxed 6 check, there is no form automatically generated for 663 (b). I try finding the form in TurboTax. It does not even come up. Did they removed it for 2018? Any suggestions as the return has already been mailed.

Re: Complex Trust - Sec 663b Record Keeping

Anonymous_ — Sun, 06 Oct 2019 14:44:22 GMT

Have you tried making the election in Step-by-Step Mode (see screenshot)?

You should not be experiencing an issue with the election - it was not removed for 2018 - but you should be aware that the election is not available if your trust is a simple trust rather than a complex trust.

Re: Complex Trust - Sec 663b Record Keeping

MikeInFL — Tue, 08 Oct 2019 02:04:38 GMT

I am away so cannot check if any difference if using the step by step. However, the filed return do show the election box checked. It does not include the support schedule.

Re: Complex Trust - Sec 663b Record Keeping

Anonymous_ — Tue, 08 Oct 2019 02:42:35 GMT

@MikeInFL wrote:

I am away so cannot check if any difference if using the step by step. However, the filed return do show the election box checked. It does not include the support schedule.

I should have been more specific. On my test return, if I only check the box (Line 6, Other Information) in Forms Mode, no election form is generated. It appears as if it is necessary to check the election box in Step-by-Step Mode for the form to be generated.

Re: Complex Trust - Sec 663b Record Keeping

MikeInFL — Tue, 08 Oct 2019 04:30:14 GMT

Thanks.

Since the return has already been sent, I am not sure there is anything I can do at this point.

This is very bad coding on the part of TurboTax. Especially since the form does not even come up when trying to search for the form in the software.