Living Trust

Forum|Forum|1 year ago
March 19, 2025
1 reply
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If a living trust has no EIN and is the sole owner of an LLC (which WOULD have an EIN) that elects S-corp status, how does it then separate income out to the person(s) the income pertains to if the trust pertains to both spouses and not an individual? Would a 1041 need to be filed to then issue out two separate income reports for the year to be reported on their 1040? Since the living trust owns the LLC, would the incorporation still disqualify the couple from QJV status?

Ask the Experts - Changes II - Mar 2025

MaryK4

Level 15

The LLC would issue a separate Schedule K-1 (1120S) to each spouse to show the individual income and deductions. It would not be a qualified joint venture because of both the LLC and the S Corp status.

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