Must Irrevocable Trust with Just $10 of Income File 1041 Return?
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Question:
Does our trustee need to file a tax return for 2021 for our irrevocable trust established on Dec 17, 2021? The only assets in the trust are our house we are still living in and some cash that we transferred to the trust. There has been no income except for interest of less that $10. Trustee did apply for a tax ID number at time of establishing trust
Response:
There’s no need to file a return; not enough income. It need only file a 1041 tax return when its income for the year exceeds $600.
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