I live in california, I am the successor trustee of my fathers trust. he died in 2006. The only income the trust receives is monthly rental income from a gas station. I distribute $2,000 to my sister and I keep the rest of the monthly income. the first year I filed a k-1 for my sister but did not file one for myself. This year I will file a k-1 for both of us. This is the second year I will be doing the trust tax return. A few questions I have, the first year tax return I said it was a complex trust because I did not distribute all the income. In the years I do distribute all the income can I say that the trust is a simple trust? Am I able to change from year to year saying its a complex or simple trust? Also how can it be a simple trust if you need to keep some money in the trust to pay lawyer fees and expenses? thank you
- posted
16 years ago