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I set up a irrevocable trust which the set up lawyer made it

Customer Question
a grantor trust which I...
I set up a irrevocable trust which the set up lawyer made it a grantor trust which I was told that I can pay tax for this trust.
For 2015 this trust got long term capital gain which happen during July 2015. Before Jan. 15.2016 I need to pay Q4 2015 estimate tax to IRS just like my other income. May I send the amount for 2015 Q4 estmate tax of this irrevocable grantor trust to IRS using my Tax ID just like my other income.
Thanks
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Submitted: 1 year ago.Category: Tax
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1/13/2016
Tax Professional: Lev, Tax Advisor replied 1 year ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,132
Experience: Taxes, Immigration, Labor Relations
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Yes that is possible

See here -

https://www.irs.gov/pub/irs-access/f1041t_accessible.pdf

Purpose of Form
A trust or, for its final tax year, a decedent’s estate may elect under section 643(g) to have any part of its estimated tax payments (but not income tax withheld) treated as made by a beneficiary or beneficiaries. The fiduciary files Form 1041-T to make the election. Once made, the election is irrevocable.

In this case - estimated tax payments are made by the trust - but are treated as made by beneficiaries.

.

For the election to be valid, a trust or decedent’s estate must file Form 1041-T by the 65th day after the close of the tax year as shown at the top of the form.

For a 2015 calendar year decedent’s estate or trust, that date is March 7, 2016.

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Customer reply replied 1 year ago
I am the Trustor of this irrevocable trust, my kids are the beneficiaries. as my Lawyer was telling me that he set this trust as Grantor Trust and I can pay tax for this trust's capital gain.Double check with you that grantor trust need to file 1041-T and I will file all info with my total income on my 1040
Tax Professional: Lev, Tax Advisor replied 1 year ago

A trust is a grantor trust if the grantor retains certain powers or ownership benefits. This can also apply to only a portion of a trust. In general, a grantor trust is ignored for income tax purposes and all of the income, deductions, etc., are treated as belonging directly to the grantor. This also applies to any portion of a trust that is treated as a grantor trust.

.

If the trust does NOT file form 1041 - and ALL income is reported on grantor's tax return - form 1041T is not required.

If you are a grantor - that actually means - fro income tax purposes - all assets in the trust are treated as OWNED by you - and the trust simply may pay income tax on your behalf without additional reporting.

Just be sure - when payment is sent to the IRS - it is referenced to YOUR names, SSN and the year for which the payment is made - so the IRS will properly credit it.

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