IRS Forms for RE in Trust (by Rich [PA]) Jan 9, 2021 12:28 PM
IRS Forms for RE in Trust (by Jim in O C [CA]) Jan 9, 2021 12:34 PM
IRS Forms for RE in Trust (by razorback_tim [AR]) Jan 9, 2021 3:28 PM
IRS Forms for RE in Trust (by 6x6 [TN]) Jan 9, 2021 3:59 PM
IRS Forms for RE in Trust (by Ray-N-Pa [PA]) Jan 10, 2021 7:53 AM
IRS Forms for RE in Trust (by Rich [PA]) Jan 10, 2021 6:35 PM
IRS Forms for RE in Trust (by Marv [IL]) Jan 11, 2021 8:32 AM
IRS Forms for RE in Trust (by Rich [PA]) Posted on: Jan 9, 2021 12:28 PM Message:
I purchased a Fl vacation home with a good friend in Nov 2020. We will rent the house monthly during the high season (winter) and, if there is interest, summers and off season. Prior to the purchase, we had a lawyer draw up a trust document that will allow the property to smoothly transfer from the two of us to our respective family members. All of my other properties (multi-unit rentals) are owned 100% by me as a sole proprietor so I have just prepared a Sch E form for attachment to my annual 1040.
I'm starting on my 2020 tax prep and am not sure which taxes forms are required for the new rental property ( Sch E, K1 and /or 1120). I was hoping to just do a Sch E for each owner but was told that I needed a K1 by a seasoned accountant.
Does anyone have a similar situation?
--108.39.xxx.xxx |
IRS Forms for RE in Trust (by Jim in O C [CA]) Posted on: Jan 9, 2021 12:34 PM Message:
I'm not a CPA but when I owned 50% of a mobile home park with a partner we had to do the K-1 route. --89.45.xx.xxx |
IRS Forms for RE in Trust (by razorback_tim [AR]) Posted on: Jan 9, 2021 3:28 PM Message:
Is the trust revocable or irrevocable? If irrevocable, then it's basically it's own person and will file it's own return from my understanding.
Based on my research, the way your attorney set this up seems a little unusual. It seems like the more common way to have done it would have had the property owned by a partnership LLC with each of your respective estate planning trusts (revocable) as members of that LLC. Then if one of you passes, your membership in the LLC passes per your trust instructions. --70.178.x.xx |
IRS Forms for RE in Trust (by 6x6 [TN]) Posted on: Jan 9, 2021 3:59 PM Message:
Learning. --73.120.xx.xxx |
IRS Forms for RE in Trust (by Ray-N-Pa [PA]) Posted on: Jan 10, 2021 7:53 AM Message:
It depends on the type of trust it is in and who many beneficiaries you have.
The preferred method for me is a simple revocable title holding trust. They can easily be shifted to CRT. A trust typically has to file a 1041 return. Ks are added for partnerships within a trust --24.101.xxx.xx |
IRS Forms for RE in Trust (by Rich [PA]) Posted on: Jan 10, 2021 6:35 PM Message:
To answer the above questions: It is a revocable trust. I did speak with my attorney and did some other research and I am able to complete the Sch E and 1040 as the trust is not considered its own entity until it is irrevocable or one of the two primaries dies. Thanks everyone for the help. R --108.39.xxx.xxx |
IRS Forms for RE in Trust (by Marv [IL]) Posted on: Jan 11, 2021 8:32 AM Message:
File form 1041 and issue k-1s to beneficiaries. Don't to forget to allocate personal/ rental expenses by days rented/personal use. --67.184.xxx.xxx |
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