If, during the election period, there is an executor, a single Form 1041 is filed annually for the combined electing trust and related estate under the name and taxpayer identification number of the estate [Treas.
Information regarding the electing trust is also reported on Form 1041.
Under the final regulations, in addition to all other grantor trusts, the trustee of an electing trust or a QRT for which a Sec.
If there is no executor, the trustee of the electing trust or QRT for which a Sec.
Both the proposed regulations and the final regulations treat the electing trust and related estate as separate shares under Sec.
The final regulations also provide rules for adjusting the DNI of the separate shares with respect to distributions made from one share to another share of the combined electing trust and related estate to which secs.
661(c), had the distribution been made to a beneficiary other than another share of the combined related estate and electing trust [Treas.
Because the electing trust's income is taxable to the estate, that income can be reported on a fiscal year basis along with the estate's own income, rather than on a calendar year basis.
For the first two taxable years following the decedent's death, no estimated tax payments are required for electing trust income [See Section 6654(1)].
4690), which permits individuals (and estates for up to two years) who actively participate in a rental real property activity to deduct losses from such activity to shelter non-passive income (up to $25,000 annually), is likewise available to an electing trust for two years.
The electing trust would be able to hold S Corp stock without being required to meet special rules qualifying the trust as a Qualified Subchapter S Trust [Sec.
The inability to identify individual split gifts for purposes of electing out of the deemed-GST-exemption allocation was compounded when the deemed-allocation rules were extended to lifetime indirect-skip transfers.
Reporting split gifts by type of transfer, segregating direct- and indirect-skip transfers and providing a simple mechanism for electing out of the deemed allocation of GST exemption highlight GSTs that may warrant an exemption allocation and greatly simplify the task of tracking a donor's use of the GST exemption.