"MCEnduro" <mcenduro[at]aol.com> wrote:

- quote -

With all due respect - you are in WAY over your head! I
would strongly urge you to refer this client out to someone
who is more familiar with trust and pass-through work.

There are NO FORMS for GAAP accounting. GAAP stands for
Generally Accepted Accounting Principles and is a collection
of rules and guidelines for how to account for income,
expenses, expenditures, fixed assets, accruals, and other
accounting related items. It may or may not be used for
used tax reporting purposes and it does NOT have to be used
to keep the company's internal accounting records.

Your client who has set up a trust to limit his personal
liability may not have accomplished what he thinks he has.
I am not aware of any entity that will protect one from the
commission of a personal wrong.

From you last statement, regarding each building having a
Schedule E - this would be true IF the taxpayer were
reporting it as a solely owned rental property on his
personal return. If there is more than one owner, and
assuming the owners are not limited to husband and wife, he
should likely be filing a partnership return for the rental
- though there is an exception in the code that would allow
each owner to report their respective share on their
individual Schedule E. But it would still be necessary for
someone to do an accurate aggregated accounting for the
entire property and then allocate those amounts to the
respective owners. This isn't particularly complicated, but
it can be complex.

Again, I would suggest you refer this one out to someone
with more experience in this area.

Good luck,
Gene E. Utterback, EA

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I have client RL. He sets ups Trust#1 to limit his personal
liability.

He receives income from three other trusts owned by
associates. He sends cash representing his share of expense
to T2(another rehab) and T3( a third rehab).

What forms are involved to do proper GAAP and IRS
accounting. Seems like each building should have a Sched E
and then each partner split the income and expenses.

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