My son is a full-time college student, whose tuition and expenses are almost completely paid by a trust for which I am the fiduciary. I've filed a 1041 for the trust, reporting a loss. Do I also need to show the loss on his personal 1040, line 17?
Second question: The trust made $18K in the stock market in 2007, and
paid taxes on this. During 2008, it lost $25K. Can the trust do a
carryback of NOL on these losses? The example in the 1041
instructions seems to imply that stock market losses are "non-
business" and can only be carried forward. Is this correct?
Also, I only pay his living expenses during the summer and Christmas
holidays. Since his trust pays more than 1/2 of his living expenses,
I'm thinking that I cannot claim him as a dependent--he meets all the
other requirements. Is this correct?
- posted 10 years ago
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