1041 Trust

[USER987456]

My father created an irrevocable grantor trust that had a 1099-NEC in 2021 (just getting around to filing now). Do we just list the 1099-NEC income on the GIS and pass that through to my fathers 1040 as we do with the other income in the trust (dividends etc)?

[Anonymous_]

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@USER987456 wrote:

Do we just list the 1099-NEC income on the GIS and pass that through to my fathers 1040 as we do with the other income in the trust (dividends etc)?

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Yes, and assuming he is operating a business as a sole proprietor, the income will wind up on his Schedule C.

[USER987456]

Understood, just reported on the GIS statement of the 1041 and passed through to the 1040?

[Anonymous_]

Yes.

[USER987456]

Thank you.

Next question is my father passed away in December last year and we will no longer be reporting trust income to his 1040 from now on. So for 2022/23 I will just report all the trust income in the 1041 directly?

[Mike9241]

you file a grantor trust return 

[USER987456]

thank you, really appreciate the help here, it really makes a difference. I can't suggest enough that people get as much of their estate in order as possible before they pass away as it can be quite a burden while trying to process the loss.

So 2022 I'll just file same 1041 but check it as a complex grantor trust so can report income etc? Definitely will need guidance on that when time comes here in few months.