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tamarmot
March 24, 2023
Solved

Do I have to file taxes for an irrevocable trust that had no income? IRS States at least $600, but there is a net loss.

  • March 24, 2023
  • 2 replies
  • 0 views
The account did have > $600 of income in its holdings, but it also had loss greater than the income, making it a net loss.  
Best answer by Anonymous_

A 1041 is required to be filed if the trust had gross income of $600 or more for the taxable year or any taxable income for the tax year.

 

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285943

2 replies

A
Anonymous_Answer
Employee
March 24, 2023

A 1041 is required to be filed if the trust had gross income of $600 or more for the taxable year or any taxable income for the tax year.

 

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285943

    T
    tamarmotAuthor
    March 24, 2023

    Yes, but this account did NOT have $600 of income because the losses offset the income.  So does that mean no taxes need to be filed?

    A
    Anonymous_
    Employee
    March 24, 2023

    If the trust received a tax reporting statement (e.g., 1099) for the sale of an asset, then a return needs to be filed to establish the sales price and basis.

     

    The IRS has no idea as to the basis of the asset (in order to determine whether there is a gain or loss) unless the transaction is reported.

      T
      tamarmotAuthor
      March 24, 2023

      Ok thank you.  It sounds like I should file the taxes, which ought to be quite simple.

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