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I have a small California Master trust for future funeral expenses. I received a Stmt of Income, Deductions and Credits Attributed to Grantor for small ants. Where i

Where are interest, uS Tresury Income, Ordinary Dividentds, short term and long term capital gains, plus Admin Expnses reported?
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4 Replies
DaveF1006
Expert Alumni

I have a small California Master trust for future funeral expenses. I received a Stmt of Income, Deductions and Credits Attributed to Grantor for small ants. Where i

First of all, you would need to prepare this in Turbo Tax Business because this is a trust account and is its own separate business entity. You would not prepare this in your own individual 1040 tax return. You may purchase Turbo Tax Business here.

 

Once your product is fully installed and downloaded after purchase, when it asks you what type of return you wish to prepare, you will indicate Trust or Estate Return (Form 1041). Then to enter income and deductions, you will go to:

 

  1. Federal Taxes>income
  2. Interest and Dividends, is the first selection you will find, you will report your treasury income under 1099 INT interest and your dividend income under 1099 DIV dividends. Even though you may not have hard copies of these two forms, this is how you would report this income.
  3. For short term capital gains, it depends.  If from a sale of stocks and bonds, you would go to investment income>stocks and bonds.  If it is on statement but no mention of stocks and bonds, it was generated from the 1099 DIV and is reported in Box 2A in your 1099 DIV entry. 
  4. Your Administrative Expenses is reported in the deductions tab in the Federal Taxes section. Go to Expenses taxes and fees>Professional, Taxes, and Accounting Fees. 
  5. Once you complete reporting all income and expenses, the program will generate a K1 for you to report on your own individual 1040 tax return. 

As you prepare your return, there will be questions pertaining to your Trust Account.  The most important one will ask what type of a trust account is it. Here you would state that this is a revocable trust. This is important because a revocable trust does not require a tax ID number thus you would use your own Social Security Number when it asks for a Tax ID.

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I have a small California Master trust for future funeral expenses. I received a Stmt of Income, Deductions and Credits Attributed to Grantor for small ants. Where i

This is a grantor trust which is disregarded for federal income tax purposes.

 

You can report the income on your individual income tax return.

I have a small California Master trust for future funeral expenses. I received a Stmt of Income, Deductions and Credits Attributed to Grantor for small ants. Where i

For a total amount of int/div and capital gains of slightly over $100, with little, if any, impact to tax, this seems like an excessive upgrade.  Seems like the last two years when talking to a TurboTax counselor by phone, they have agreed and advised to report income and dividends only on my individual return.  Not sure if that guidance is risky or not.  

DaveF1006
Expert Alumni

I have a small California Master trust for future funeral expenses. I received a Stmt of Income, Deductions and Credits Attributed to Grantor for small ants. Where i

it's only risky if you have a separate Tax ID# for the trust. If it is issued in your social security number, then you can rely on the advice of the Turbo Tax Agents for the small amount of income that needs to be reported.

 

@sfreddy1 

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