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Data Sharing

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.
  1. 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.
    1. After you prepare the client's
      Grantor Report
       in the 1041 client's return, print or preview the 1041 return.
    2. Close the 1041 client.
    3. Open the 1040 client's return.
      The
      Data Sharing
       window opens and asks you to accept data from the Grantor Report.
  2. 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.
    important
    Only use this procedure if all items were reported using a separate EIN issued to the Trust.
  3. Open
    Screen K1T
     in the
    K1 E/T
     folder.
  4. Enter the trust's identifying information, and mark the
    Grant Trust
     checkbox.
  5. Enter the data in the
    Grantor Trust Income, Expenses, and Other Information
     section.
    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 the
      Grantor Report
       printed 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 the
      Statement
       window for the
      Interest
       field on the
      K1T
       screen, enter interest in the
      Interest income
       field on the
      B&D
       screen in the
      Income
       folder.)

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual,1041 Fiduciary
  • Subject: Data sharing

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