Share data from a Grantor Trust letter with a 1040 return
Following the Form 1041 instructions from the IRS, a Grantor Trust may file Form 1041 or use an optional filing method that doesn't require filing Form 1041. For data sharing purposes, UltraTax CS only supports the “filing Form 1041” method using a separate employer identification number (EIN) issued to the Trust. Probably, all Trust activity is reported to the IRS with the Trust's EIN, and not with the Grantor's Social Security Number (SSN). To avoid IRS matching problems, Grantor Trust data will be shared to Screen K1T in the K1 E/T folder. This will result in summarized reporting of the Grantor Trust data on the Grantor's individual return.
- Export Grantor Trust data from 1041 return. Take these steps if you prepared the client's 1041 return and want to retrieve the Grantor Trust data into the 1040 client.
- After you prepare the client'sGrantor Reportin the 1041 client's return, print or preview the 1041 return.
- Close the 1041 client.
- Open the 1040 client's return.TheData Sharingwindow opens and asks you to accept data from the Grantor Report.
- Enter the Grantor Trust data directly into the 1040 return. Take these steps if you didn't prepare the client's Grantor Trust Letter, but you're preparing the client's 1040 return.importantOnly use this procedure if all items were reported using a separate EIN issued to the Trust.
- OpenScreen K1Tin theK1 E/Tfolder.
- Enter the trust's identifying information, and mark theGrant Trustcheckbox.
- Enter the data in theGrantor Trust Income, Expenses, and Other Informationsection.note
- If the fiduciary uses an optional filing method and items are reported under the Grantor's SSN, you shouldn't share data from the 1041 client into the 1040 client. You can turn off the data sharing feature for the 1041 client.
- For these types of Grantor Trusts, enter the amounts from theGrantor Reportprinted from the 1041 client on the applicable screen within the 1040 client return to report the amounts in detail. (For example, instead of entering interest in theStatementwindow for theInterestfield on theK1Tscreen, enter interest in theInterest incomefield on theB&Dscreen in theIncomefolder.)
