Trust (irrevocable)




Report an irrevocable trust in Part 6 if you, your spouse, or your dependent child has a reportable interest in the trust or received income from the trust.  Report the underlying assets of an irrevocable trust if you, your spouse, or your dependent child has a reportable interest in the trust.

Reportable Current or Future Interest – Proportionate interest in the value and income of the underlying assets is readily ascertainable

#

Description

EIF

Value

Income Type

Income Amount

1

Family trust #1:

No

 

 

 

1.1

QWERTY Growth Fund (QWTYX)

Yes

$50,001 - $100,000

 

$2,501 - $5,000

1.2

Philadelphia, PA, bonds

N/A

$1,001 - $15,000

interest

$201 - $1,000

1.3

Xylophone Technologies Corporation (XYZ)

N/A

None (or less than $1,001)

dividends, capital gains

$201- $1,000

Reportable Current or Future Interest – Proportionate interest in the value of and income from the underlying assets is not readily ascertainable

#

Description

EIF

Value

Income Type

Income Amount

1

Family trust #1:

No

$50,001 - $100,000

dividends, interest

$5,001 - $15,000

1.1

QWERTY Growth Fund (QWTYX)

Yes

 

 

 

1.2

Philadelphia, PA, bonds

N/A

 

 

 

1.3

Xylophone Technologies Corporation (XYZ)

N/A

 

 

 

Reportable Current or Future Interest – Proportionate interest in the value of the underlying assets is not readily ascertainable; no income received

#

Description

EIF

Value

Income Type

Income Amount

1

Family trust #1: See Endnote

No

$50,001 - $100,000

 

None (or less than $201)

1.1

QWERTY Growth Fund (QWTYX)

Yes

 

 

 

1.2

Philadelphia, PA, bonds

N/A

 

 

 

1.3

Xylophone Technologies Corporation (XYZ)

N/A

 

 

 

Endnote to #1: I have a 1/3 remainder interest in the trust.  The current value of the trust is reported.

For You, Your Spouse, and Your Dependent Children

Part 6

Reporting a Trust

Report a trust if any of the following applies:

(1) Income Received:  You, your spouse, and your dependent children received more than $200 in total income from the trust during the reporting period.

(2) Reportable Current Interest:  You, your spouse, or a dependent child is currently entitled to receive income from the trust or to access the principal of the trust and the value of that interest was more than $1,000 and the end of the reporting period.

(3) Reportable Future Interest:  You, your spouse, or a dependent child has a future interest in principal or income that is vested under controlling state law and the value of that interest was more than $1,000 at the end of the reporting period.

Description:  Use initials (“J.S. 2003 Trust”) or a general description (“Family trust #1”) in lieu of a full name.

EIF:  Select “No.”

Value:  Report the value of a reportable interest in the trust by selecting the appropriate category.  Leave this field blank, however, if you are able to report the values of the underlying assets.

Income Type and Income Amount:  Report the type(s) and amount of income received from the trust during the reporting period.  Leave these fields blank, however, if you are able to report the income from the underlying assets.

Reporting the Underlying Assets of a Trust

Report an underlying asset of a trust if:

(1) you, your spouse, or a dependent child has a reportable current or future interest in the trust and

(2) the underlying asset was worth more than $1,000 at the end of the reporting period or you received more than $200 from the underlying asset during the reporting period.

Report each underlying asset using the guidance applicable to that type of asset.

For purposes of valuing an underlying asset, you may use the value of the proportionate interest that you, your spouse and your dependent children have in the underlying asset.  Income from an underlying trust asset is treated as received if (1) it is clear it contributed more than $200 to a trust distribution or (2) the income is recognized for tax purposes by you, your spouse, or your dependent child.

In certain cases, beneficiaries cannot ascertain the proportionate interest that they have in the value and/or income of the trust’s underlying assets.  If you are unable to ascertain the proportionate value of the underlying assets, you may instead provide a good faith estimate of the value of the total interest that you, your spouse, and your dependent children have in the trust.  Similarly, if you are unable to ascertain the proportionate income from the underlying assets, you may instead report the total amount of income that you, your spouse, and your dependent children received from the trust.

Excepted Trusts:  If you do not have a right to receive information regarding the underlying assets of a trust that someone else established for your benefit, you might be able to rely on a partial exception for “excepted trusts.”

Click here for more information on reporting an excepted trust.

Click Here for Frequently Asked Questions