Talk:How to File a Trust Return

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I handed this trust by a friend and asked if i could prepare the taxes for him. Im not to formiliar with this form. What was handed to me was a letter by a the CPA firm that was doing the trust prior year. It doesnt look that difficult but I want to be sure I'm doing the return corectly. Included in the package was a 1040, a 1041-T and a Sch A & D. Can anyone give me any guidance in preparing this type of return? The prior accouintants gave the Adm 0of the trust an explanation of where each line item would go on the 2004 tax return. Do I need the original documents? It appears the the 1040 is where the heart of the return should be and the 1041 is eonly inforrmational. Can anybody help me?


It sounds to me like you have a grantor trust. If this is a grantor trust, it should have the "Grantor type trust" box checked on Form 1041, field A "Type of entity." Grantor trusts use Form 1041 as a transmittal form for the return, and all of the income, deductions, etc. are reported on each grantor's Form 1040. The fiduciary is required to supply each grantor with a summary (a.k.a. grantor letter) of his/her share of the income, deductions, etc. to enable him/her to complete Form 1040. The grantor letter serves as a substitute for Schedule K-1. See the topic Grantor Trusts for more information.
PamelaW 12:53, 29 Jun 2005 (CDT)
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