Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss
trust K1 questions
16 views
Skip to first unread message
Pico Rico
May 19, 2012, 1:38:25 PM5/19/12
to
If a trust owns rental real estate that has an operating loss for the year,
and other income (interest, dividends) are they netted out before
determining numbers for the beneficiaries' K1s? Or is line 7 "net rental
income" a negative number? or something else? Is such a loss passed on to
the beneficiaries subject to the beneficiaries' limit on passive loss
deductions? Or, how is this situation handled?
thanks.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
and other income (interest, dividends) are they netted out before
determining numbers for the beneficiaries' K1s? Or is line 7 "net rental
income" a negative number? or something else? Is such a loss passed on to
the beneficiaries subject to the beneficiaries' limit on passive loss
deductions? Or, how is this situation handled?
thanks.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
JoeTaxpayer
May 19, 2012, 1:48:27 PM5/19/12
to
On 5/19/12 1:38 PM, Pico Rico wrote:
> If a trust owns rental real estate that has an operating loss for the year,
> and other income (interest, dividends) are they netted out before
> determining numbers for the beneficiaries' K1s? Or is line 7 "net rental
> income" a negative number? or something else? Is such a loss passed on to
> the beneficiaries subject to the beneficiaries' limit on passive loss
> deductions? Or, how is this situation handled?
I have trust experience, but not with real estate. (warning)
> If a trust owns rental real estate that has an operating loss for the year,
> and other income (interest, dividends) are they netted out before
> determining numbers for the beneficiaries' K1s? Or is line 7 "net rental
> income" a negative number? or something else? Is such a loss passed on to
> the beneficiaries subject to the beneficiaries' limit on passive loss
> deductions? Or, how is this situation handled?
In a year that the *stock* loss zeroed dividend gains and then some, the
loss carried to the next year (within the trust), it's not given to the
beneficiaries.
Stuart A. Bronstein
May 20, 2012, 12:51:21 PM5/20/12
to
JoeTaxpayer <JoeTa...@comcast.net> wrote:
> Pico Rico wrote:
>> If a trust owns rental real estate that has an operating loss
>> for the year, and other income (interest, dividends) are they
>> netted out before determining numbers for the beneficiaries'
>> K1s? Or is line 7 "net rental income" a negative number? or
>> something else? Is such a loss passed on to the beneficiaries
>> subject to the beneficiaries' limit on passive loss deductions?
>> Or, how is this situation handled?
>
> I have trust experience, but not with real estate. (warning)
> In a year that the *stock* loss zeroed dividend gains and then
> some, the loss carried to the next year (within the trust), it's
> not given to the beneficiaries.
My understanding is consistent with that - a trust can distribute
> Pico Rico wrote:
>> If a trust owns rental real estate that has an operating loss
>> for the year, and other income (interest, dividends) are they
>> netted out before determining numbers for the beneficiaries'
>> K1s? Or is line 7 "net rental income" a negative number? or
>> something else? Is such a loss passed on to the beneficiaries
>> subject to the beneficiaries' limit on passive loss deductions?
>> Or, how is this situation handled?
>
> I have trust experience, but not with real estate. (warning)
> In a year that the *stock* loss zeroed dividend gains and then
> some, the loss carried to the next year (within the trust), it's
> not given to the beneficiaries.
(and deduct) taxable income to beneficiaries. But I'm not aware of a
provision that allows a trust to distribute losses except in its
final year.
___
Stu
http://DownToEarthLawyer.com
Pico Rico
May 21, 2012, 10:55:00 AM5/21/12
to
"Stuart A. Bronstein" <spam...@lexregia.com> wrote in message
news:XnsA059643D414B3s...@130.133.4.11...
> JoeTaxpayer <JoeTa...@comcast.net> wrote:
>> Pico Rico wrote:
>
>>> If a trust owns rental real estate that has an operating loss
>>> for the year, and other income (interest, dividends) are they
>>> netted out before determining numbers for the beneficiaries'
>>> K1s? Or is line 7 "net rental income" a negative number? or
>>> something else? Is such a loss passed on to the beneficiaries
>>> subject to the beneficiaries' limit on passive loss deductions?
>>> Or, how is this situation handled?
>>
>> I have trust experience, but not with real estate. (warning)
>> In a year that the *stock* loss zeroed dividend gains and then
>> some, the loss carried to the next year (within the trust), it's
>> not given to the beneficiaries.
>
> My understanding is consistent with that - a trust can distribute
> (and deduct) taxable income to beneficiaries. But I'm not aware of a
> provision that allows a trust to distribute losses except in its
> final year.
>
so what if the trust has both income and losses. e.g. dividend and interest
>> Pico Rico wrote:
>
>>> If a trust owns rental real estate that has an operating loss
>>> for the year, and other income (interest, dividends) are they
>>> netted out before determining numbers for the beneficiaries'
>>> K1s? Or is line 7 "net rental income" a negative number? or
>>> something else? Is such a loss passed on to the beneficiaries
>>> subject to the beneficiaries' limit on passive loss deductions?
>>> Or, how is this situation handled?
>>
>> I have trust experience, but not with real estate. (warning)
>> In a year that the *stock* loss zeroed dividend gains and then
>> some, the loss carried to the next year (within the trust), it's
>> not given to the beneficiaries.
>
> My understanding is consistent with that - a trust can distribute
> (and deduct) taxable income to beneficiaries. But I'm not aware of a
> provision that allows a trust to distribute losses except in its
> final year.
>
income, and capital loss and/or rental activity loss?
Is it netted out at the trust level, and then the net income distributed, or
the net loss carried over in the trust? If a loss is carried over in the
trust, how can it be used by the trust?
Stuart A. Bronstein
May 21, 2012, 1:23:03 PM5/21/12
to
"Pico Rico" <Pico...@nonospam.com> wrote:
>> My understanding is consistent with that - a trust can
>> distribute (and deduct) taxable income to beneficiaries. But
>> I'm not aware of a provision that allows a trust to distribute
>> losses except in its final year.
>
> so what if the trust has both income and losses. e.g. dividend
> and interest income, and capital loss and/or rental activity
> loss?
>
> Is it netted out at the trust level, and then the net income
> distributed, or the net loss carried over in the trust? If a
> loss is carried over in the trust, how can it be used by the
> trust?
If the trust distributes taxable income, it takes a deduction on that
>> My understanding is consistent with that - a trust can
>> distribute (and deduct) taxable income to beneficiaries. But
>> I'm not aware of a provision that allows a trust to distribute
>> losses except in its final year.
>
> so what if the trust has both income and losses. e.g. dividend
> and interest income, and capital loss and/or rental activity
> loss?
>
> Is it netted out at the trust level, and then the net income
> distributed, or the net loss carried over in the trust? If a
> loss is carried over in the trust, how can it be used by the
> trust?
income, and the beneficiary-recipient recognizes it as taxable. If
the trust has losses in addition, well, it just has less taxable
income to set it off against.
___
Stu
http://DownToEarthLawyer.com
0 new messages