On Jan 29, 3:08*pm, whiskers <whiskers...[at]hotmail.com> wrote:
- quote -

There would be $30 difference if there was any income or gains to
offset it. In your case yhou'd never get the$ 30. File as Complex.

ed
- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 27, 9:53*am, ed <edcos...[at]sbcglobal.net> wrote:
- quote -

the charitable contributions were only for the first year of the
trust. But as you say it is only a $30 difference between filing as a
simple vs. complex trust. I will file as a complex trust in the
future. Again thank you for everyone's reply. This group has really
helped me.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 26, 10:03*pm, whiskers <whiskers...[at]hotmail.com> wrote:
- quote -

A Simple Trust is prohibited from allowing its funds to be used for
charitable purposes. If your roriginal trust instrument allows this
it is NOT a Simple Trust and never can be. You read the Instructions
for form 1041 in these regards (seee page 41). From a practical
matter I ihave been a trustee for dozens of trusts and have never
called any a Simple Trust because there is no retained income to
shelter with the extra $200 of Exemption and if applied to retained
capital gains it would only result in a $30 tax difference at most.

ed
- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 26, 9:23*am, "ChrisZ" <spam.b...[at]coastal.net> wrote:
- quote -

After reading the trust over again. It does say to distribute all the
income. the first year I had to make some charitable contributions, so
that first year it did not qualify as a simple trust as per the 1041
instructions. the second year I left some money in the trust to pay
some large lawyer fees that were coming up early in the following
year, which is this year. So again i will file as a complex trust. In
the years ahead I plan on distributing all the income less the
expenses to qualify it as a simple trust. Again thank you for
everyone's replies.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 26, 10:16 am, ed <edcos...[at]sbcglobal.net> wrote:
- quote -


I think what is confusing in a trust tax return is the terminology, e.g.
the term "distribution" means assigning income to a beneficiary on a K1
regardless of whether they received any actual cash or income or assets.
Lawyers can make trust terms vague and confusing so there are different
interpretations for an executor. The OP should seek competent advice but
it is not outside the realm of doing it yourself once you get good
advice.



--
Message posted using http://www.talkabouttaxes.com/group/...xes.moderated/
More information at http://www.talkabouttaxes.com/faq.html

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 20, 12:06*am, whiskers <whiskers...[at]hotmail.com> wrote:
- quote -

If you got any of the income, you must get a K-1. If there was income
that wasn't distributed it must be taxed to the Trust. If the trust
instrument requires all income to be distributed, you must distribute
it all on K--1s and it is then probably a Simple Trust, but that is
immaterial to you if all the income is distributed on K-1's. Since
you didn't distribute all the income it's a Complex trust, but you
have filed a false return nd taken cash without reporting on a K-1 so
probably you didn't pay tax on it either.

- quote -

No Unless the trust instrument requires distributionof all ncome you
can't call it a Simpl;e Trust. It doesn't make any difference to you
because if all the income is distributed there is nothing to save with
a higher Exemption.

- quote -

No, not unless it is actually a Simple Trust and you fail to follow
the terms so that it becomes a complex Trust that year..

- quote -

income becaus your sister gets a fixed amount. Curent income to
distribute is AFTER paying expenses. Spend some of that income on a
competent tax preparer, or read the 1041 instructions.

ed

- quote -

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 24, 6:57*pm, Stuart Bronstein <spamt...[at]lexregia.com> wrote:
- quote -


All trusts with income over $600 per year MUST file a 1041. The only
advantage to a Simple Trust is its $300 Exemption versus Complex
Trust's $100 exemption. A complex trust can retain income and
distribute capital versus these transactions are not allowed in a
Simple Trust.

ed
- quote -

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Stuart Bronstein" <spamtrap[at]lexregia.com> wrote in message
news:Xns9A2FAC773FFE7avocatstuyahoofr[at]130.133.1.4...
- quote -

A simple trust may have to file a tax return, no? For example an
irrevocable trust that require all the income to be distributed to a number
of non-grantor beneficiaries.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

whiskers <whiskers222[at]hotmail.com> wrote:
- quote -

A complex trust can give the trustee discretion when, how and to whom
to distribute income. A simple trust does not require the filing of a
tax return.

Stu

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 22, 3:26*pm, Stuart Bronstein <spamt...[at]lexregia.com> wrote:
- quote -

to filing as a complex trust as opposed to a simple trust?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

inky dink wrote:
- quote -

That's my understanding as well.

Stu

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"whiskers" <whiskers222[at]hotmail.com> wrote in message
news:5c457837-3373-4462-b2ad-96922ac41316[at]u10g2000prn.googlegroups.com...
- quote -


I think if the terms of the trust do not REQUIRE you to distribute all the
trust income each year, it is a complex trust. This is so even if you do
distribute all the income in a particular year.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

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

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >