Discussion:Can trust pay tax on distributed income
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Can trust pay tax on distributed income
| 10 June 2008 | |
| I realize that it's usually beneficial tax-wise to pass along the tax on distributed income to the beneficiary. Assuming a circumstance where the trustee would rather have the trust pay the tax and not K-1 some or all of the amount that was distributed, can that be done?
Thanks, Joe Badham | |
| 10 June 2008 | |
| Hi the trust should pay the tax on undistributed income only. It doesnt work the way a trustee would like. bye | |
| 10 June 2008 | |
| write a trust check to the taxing authority and memo the check with the benficiary's social security number and tax year the tax is being paid for. Expense taxes paid account of the trust. If more than one beneficiary separate checks must be issued. Distribute the checks when the distribution check is issued.
This way the taxes are paid by the trust and the beneficiary can send the check to the IRS as a estimated payment to cover the trust distribution.taxea | |
| 11 June 2008 | |
| The trustee cannot elect to ignore a distribution for the sole purpose of allowing the income to be taxed at the trust level. | |
| 11 June 2008 | |
| Do you realize this guy posted this question three times, and has no profile? Not knowing his background I am unsure the responses are understood by the original poster. Praying for your client I remain hopeful you will post your profile. | |
| 11 June 2008 | |
| Perhaps he is taking a Biblical approach, and will continue seeking and asking until he get's the answer he desires. lol. | |
To join in on this discussion, you must first
log in.
