Grantor Living trust owner of S Corp

Forum|Forum|1 year ago
January 8, 2025
1 reply
0 views

I have a living trust (Revocable Trust for John Smith). There is no EIN for the trust. The trust is a shareholder in an scrop. In the end, I know all the taxes flow to me as an individual for the taxes owed for the trust. What do I enter on the K1 for the scorp? My individual information or the Trusts information?

Not A Product Question

Hi Palms

Employee

The trust is completely disregarded since you don't even have an EIN so you'd enter your individual information.

DaveF1006

Yes, HI Palms information is correct but here is some additional information that may be helpful.

Since the trust is a revocable trust, it is treated as a "grantor trust" for tax purposes, meaning the income and other tax items reported on the K-1 flow directly to the grantor (in this case, you, as the individual) for tax reporting.

For the K-1 form:

Name and address: The trust’s name (e.g., "Revocable Trust for John Smith") should be listed on the K-1 as the shareholder.
Tax Identification Number (TIN): Since the trust is a grantor trust, it typically does not have a separate EIN (Employer Identification Number). Instead, your individual Social Security Number (SSN) is used on the trust’s income tax return.
Distributive share of income and deductions: The K-1 will reflect the trust's share of the S-Corp income, deductions, and other items. this will flow to your individual tax return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"