On Mar 26, 6:49 pm, what-a-guy <reginald.wayne.richa...[at]gmail.comwrote:

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What kind of trust is this? I know that for a living trust, or at
least some kind of living trust, there is no 1041 and the income goes
directly onto your 1040. It's just a fancy way of putting some of
your money under protection from lawsuits, divorces, quicker
distribution of inheritance, etc (though I don't know if it is always
effective at these tasks). There are words such as grantor trusts,
revocable trusts, etc, which I don't quite understand, but worth a
look. If this trust is truly a separate entity, then a K1 is in
order, but the trust rates are extremely high so it doesn't make sense
to me why anyone would have one.

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Yes.

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So the trust will claim the deduction for him? I didn't know that a
trust could do that.

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in article
e6e9f74b-308a-41a5-9dcf-1d5d520c251e...oglegroups.com,
what-a-guy at reginald.wayne.richards[at]gmail.com wrote on 3/26/09 9:49 PM:

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return. Whether he reports a loss will depend on the character of the loss
in the trust.
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income to be distributed to the beneficiaries.

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support.

Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

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?

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >