03-06-2004, 06:16 AM
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 Re: 1041 help - quote - > My father-in-law set up a marital trust upon the death of
Yes.> his wife in 1992. He is required under the trust agreement > to withdraw all earnings which he has always done. He has > the discretion to take out the principal which he has never > done until 2003. In 2003, income was $1000 in interest and > he withdrew $15,000. There are no other deductions, income > or expenses. Prior to 2003, he filed his 1041 as a simple > trust. > My questions: > 1. Because he withdrew part of the principal, does he > file as a complex trust? - quote - > 2. Line 8, 1041, schedule B entry is $1000?
Yes.- quote - > 3. Line 10, 1041, schedule B entry is $15,000?
Yes.- quote - > 4. Am I correct in stating that he owes tax only on the
Yes.> $1000 interest and not on the $15,000? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-02-2004, 04:10 AM
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| 1041 help My father-in-law set up a marital trust upon the death of his wife in 1992. He is required under the trust agreement to withdraw all earnings which he has always done. He has the discretion to take out the principal which he has never done until 2003. In 2003, income was $1000 in interest and he withdrew $15,000. There are no other deductions, income or expenses. Prior to 2003, he filed his 1041 as a simple trust. My questions: 1. Because he withdrew part of the principal, does he file as a complex trust? 2. Line 8, 1041, schedule B entry is $1000? 3. Line 10, 1041, schedule B entry is $15,000? 4. Am I correct in stating that he owes tax only on the $1000 interest and not on the $15,000? TIA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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