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Form 706-GS(D-1)
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Reviewing the GST Information Reported on Form 706-GS(D-1)

In ONESOURCE Trust Tax, the Form 706-GS(D1) page allows you to review the GST information for the trust recipients who were set up as a skip person. The GST information includes:
  • The trust inclusion ratio.
  • The distribution data for each skip person (reported in Part II).
  • The trust information (reported in Part III).
Part III of Form 706-GS(D-1) addresses the allocation of the GST tax exemption and the calculation of the trust inclusion ratio. Part III is included only on Copy A (the IRS' copy) of Form 706-GS(D-1). It is not included on Copy B (the distributee's copy).
The Form 706-GS(D1) page has two fields for the inclusion ratio. The first
Inclusion ratio
 field is the trust-level inclusion ratio and it is the first field under the
Notification of Distribution from a Generation-skipping Trust(Overrides)
 collapsible section:
The second
Inclusion Ratio
 field is the inclusion ratio applicable to each distribution (referred to as the skip person inclusion ratio). As shown in the following graphic, the field for the skip person inclusion ratio is located in the grid under the
Notification of Distribution from a Generation-skipping Trust(Overrides)
 collapsible section:
ONESOURCE Trust Tax uses the skip person inclusion ratio when it exists or is entered. The trust-level inclusion ratio is used when there is no skip person inclusion ratio. If there is no trust-level or skip person inclusion ratio, then the inclusion ratio reported on in Part II column d of Form 706-GS(D-1) is 0.00.

Reviewing the Trust-Level Inclusion Ratio and the Trust Information

The trust-level inclusion ratio and each question listed in Part III of Form 706-GS(D-1) are included at the top of the
Notification of Distribution from a Generation-skipping Trust(Overrides)
 collapsible section on the Form 706-GS(D1) page. Although the trust-level inclusion ratio can be entered and updated on the Form 706-GS(D1) page, it can also be included on Record 1, position 413 in the monthly data bridge file that is transmitted to ONESOURCE Trust Tax by your trust accounting vendor.
To review the trust-level inclusion ratio and the trust information:
  1. Open the trust.
  2. Select the
    Additional Information and Tax Forms
     main topic then the
    Form 706-GS(D1)
     subtopic.
  3. Review the trust-level inclusion ratio in the
    Inclusion ratio
     field. If necessary, you can change it. The skip person inclusion ratio, which is in the
    Inclusion Ratio
     field in the grid, differs from the trust-level inclusion ratio in that the skip person inclusion ratio applies to the distribution. ONESOURCE Trust Tax uses the skip person inclusion ratio when it exists or is entered. The trust-level inclusion ratio is used when there is no skip person inclusion ratio. If there is no trust-level or skip person inclusion ratio, then the inclusion ratio reported in Part II column d of Form 706-GS(D-1) is 0.00.
  4. Select the
    If this is not an explicit trust, check here and attach a statement describing the arrangement that makes its effect substantially similar to an explicit trust
     check box only if the trust is a nonexplicit trust. A nonexplicit trust is a trust arrangement treated as a trust for GST purposes only. Examples of nonexplicit trusts include: life estates and remainders, estates for years, and insurance and annuity contracts.
  5. Select
    Yes
     from the
    Has any property been contributed to this trust since last Form 706-GS(T) or (D-1) was filed? If "Yes", attach schedule showing how the trust's inclusion ratio has been refigured.
     drop-down list only if additional property was contributed to the trust since the last taxable termination or taxable distribution. ONESOURCE Trust Tax does not support Form 706-GS(D-1) attachments.
  6. Select
    Yes
     from the
    Have any contributions been made to this trust since the last Form 706-GS(T) or (D-1) was filed that were not included in calculating the trust's inclusion ratio? If "Yes", attach a statement explaining why the contributions were not included.
     drop-down list only if additional contributions were received by the trust and the trust inclusion ratio was not recomputed. ONESOURCE Trust Tax does not support Form 706-GS(D-1) attachments.
  7. Select
    Yes
     from the
    Has any exemption been allocated to this trust by reason of the deemed allocation rules?.
     drop-down list only if the transferor's GST exemption has been allocated to the trust under the automatic allocation rules.
  8. Select
    Save
    .

Reviewing the Distribution Data for Each Skip Person

ONESOURCE Trust Tax totals the distributions made to each skip person and displays the total amount in the grid under the
Notification of Distribution from a Generation-skipping Trust(Overrides)
 collapsible section on the Form 706-GS(D1) page.
note
Transactions posted to the tax codes listed in GST-Applicable Tax Codes may be GSTs. Distributions made to a skip person for qualifying educational or medical expenses (which are posted to tax codes 301 through 304, 337 through 339, and 390) are not GSTs and are excluded from Form 706-GS(D-1).
To review the distribution data for each skip person:
  1. Open the trust.
  2. Select the
    Additional Information and Tax Forms
     main topic then the
    Form 706-GS(D1)
     subtopic.
  3. Review the distribution data in the grid under the
    Notification of Distribution from a Generation-skipping Trust(Overrides)
     collapsible section. If necessary, you can override the data.
  4. Select
    Save
    .