Discussion:Tax paid by Trust for Trust Income
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Discussion Forum Index --> Tax Questions --> Tax paid by Trust for Trust Income
Rogers4693 (talk|edits) said: | 3 March 2007 |
| Is the distribution from the Complex Trust for the Trust's income tax in 2005 considered a deductible distribution to the beneficiary in 2006 for the Trust? | |
| 27 April 2007 | |
| agreed, but is there a problem if the income beneficiary pays the tax for the trust even if there were no distributions. the case of a widow paying the tax owed rather than the trust on the advice of her broker! | |
| 27 April 2007 | |
| At best you have a reportable gift of future interest to the remainder; at worst, because widow has income rights in regard to her contribution to trust corpus, you have a retained interest that could have consequence to her eventual estate. Might be a good idea to inform broker of the consequence of practicing law without a license and suggest possible firm liability. | |
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