Re: Tax preparation with Revocable Trust

In a nutshell Ben's post should be shredded as it is irrelevant. You either have a grantor- revocable living trust/1040 situation, or you have an irrevocable trust / 1041 situation. There are other "grantor trust" situations where a 1041 is required even though all the income is pass-through and reported on someone's 1040. I'm the trustee of several of these where the child is the trust beneficiary but all the income is taxed on the parent's return. None of these are your situation. You have a simple REVOCABLE tiviing trust where the current beneficiaries are the grantors and you should ignore it for tax purposes until one of the grantor's dies--then it gets a lot more complicated. There is no ohter "choice", nor dependentcy upon income of any kind. The 1041 Instructions are confusing in that they dwell on these other types of Grantor trusts, but if you read the instructions on page 5 you would use optional method #1 and the TIN # is your SS #.There used to be a specific statement that directed you r situation to NOT file a 1041, but I can't find it this morning. Believe me. Do not use a 1041, Do not apply for a TIN # for your trust. Report all the income on your 1040. ed
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