Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

Once the original single "income beneficiary" of a QSST

Once the original single "income...
Once the original single "income beneficiary" of a QSST Trust dies, and the secondary principal beneficiaries take over, how do you report that on the QSST?
JA: The Expert will know how to help. Please tell me more, so we can help you best.
Customer: Grantor dies, leaves S-corp stock in the Decedent's Trust, which is a qualified QSST. The beneficiary is his wife, who pulls out allincome fromt he Trust and reports the S-corp K-1 on her personal return. Now she has passed, and the remainder beneficiaries of the stock receive the income and,within two years, they have the stock distributed to them. How do I report their share of the S-corp income during the two year admin period?
JA: Is there anything else the Expert should be aware of?
Customer: The QSST Trust also has some cash in it which gives off income.
Show More
Show Less
Ask Your Own Tax Question
Answered in 52 minutes by:
9/4/2017
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,729
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
Hi from just answer. I'm PDtax. I will assist.I need to confirm something before responding. Please bear with me...
Ask Your Own Tax Question
Customer reply replied 3 months ago
No hurry. At the office pulling my hair out! :)
Would a phone call be better? I do need some background on the inheritees.
Ask Your Own Tax Question
Customer reply replied 3 months ago
OK. We should be able to work this through by e-mail.
Customer reply replied 3 months ago
let me know what you need. I'll be here!
Ok. Let's assume the inheritors qualify as shareholders.At date of death the encompasses to the estate.
Ask Your Own Tax Question
Customer reply replied 3 months ago
the successor beneficiaries have received the stock from the S-Corp as part of their inheritance.
Sorry, trying speak to type.Inheritees.Income passes
Ask Your Own Tax Question
Then they accept the income personally. The trust might liquidate or remain. Depends on the trust instrument.
Ask Your Own Tax Question
It is the inheritees income after date of death to present. Some qsst trusts can report income, yours does not.
Ask Your Own Tax Question
Customer reply replied 3 months ago
I agree with that. So, now I have a Trust that has a K-1 from the S-corp, but also has some passive income from a couple of bank accounts. The original Trust CPA allowed expenses and passive income as part oft his Trust.Do I prepare a K-1 from the Trust showing the income from the passive bank accounts on the interest income line in addition to any expenses on the regular K-1, page 1. Then on page 2 show the amount that flows from the K-1 of the S-Corp directly, in relation to the percentage of the stock that they own after the death of the original beneficiary?
Do I prepare a K-1 from the Trust showing the income from the passive bank accounts on the interest income line in addition to any expenses on the regular K-1, page 1. YES Then on page 2 show the amount that flows from the K-1 of the S-Corp directly, in relation to the percentage of the stock that they own after the death of the original beneficiary?I'm not following part 2. Each shareholder will get their own K-1.And I think the page 1 interest income report after expenses will be enough. Please confirm.
Ask Your Own Tax Question
Customer reply replied 3 months ago
When I have seen QSST income reported previously, I have seen a separate schedule, or page 2 comments, a schedule showing the beneficiaries percentage of the S-corp. It will say, " Qualified Sub chapter S Trust pass through Entity, 95-xxxxx". Then show "Line one ordinary income $xx,xxxxx". And so on.This way the amount coming to the beneficiary through the K-1, as from a brokerage account, is separate from the amount coming directly from the S-Corp.This is why I'm confused. I haven; seen a QSST before that isn't just a straight Grantor pass-through. This one is a Decedent's Trust that owns the S-Corp AND has other types on income besides the S-Corp.
Got it now.I agree with the schedule treatment. It is because there was multiple income from the s corp, both trust and nontrust.The reason for the schedule is the s corp income reporting could be tracked to the 1099s it receives. Allows for 1099 matching.Thanks for asking at just answer. Positive feedback is appreciated, as is a bonus if warranted. I'm PDtax.
Ask Your Own Tax Question
Customer reply replied 3 months ago
Just to be certain...You agree that passive income, interest and dividends, and expenses, that are not S-corp related, can go on the front of the Decedent's Trust K-1 and be reported on the beneficiaries return as a pass through from the Trust.While income or expenses from the S-Corp K-1 can go on an attached schedule showing a straight pass-through to the beneficiary, at their ownership percentage,as a pass through from the S-Corp.
I do. Makes sense.
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,729
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
PDtax and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 3 months ago
Thanks. It's always wonderful having someone to bounce things off of!
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,729
4,729 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
I haven't filed a personal return since 2011 tax year. In
Hello. I haven't filed a personal return since 2011 tax year. In 2013, I moved overseas, and didn't return till 2016. Can I just file my back taxes, or must I consult with tax attorney first for any i… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Fred and Wilma Flintstone are the sole shareholders of
Fred and Wilma Flintstone are the sole shareholders of Bedrock Rock (BR), a business organized as a C corporation that provides natural stone and rock countertops. In addition, they co-own Cave Dwelli… read more
Carter McBride
Carter McBride
LLM
50 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
Is the sale of customer list a capital gain or ordinary income?
Is the sale of self-created intangibles, such customer lists, digital files, web sites, etc subject to capital gain or ordinary income treatment?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question regarding the ordinary income tax. If the
Hello, I have a question regarding the ordinary income tax. If the ordinary income tax due is negative does that apply anywhere? This pertains to the sale of an S corp .business. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
WHere do I report 1120 Corporate Dividends on a 11040.
WHere do I report 1120 Corporate Dividends on a 11040 … read more
PDtax
PDtax
Certified Public Accountant (CPA)
4,729 satisfied customers
If a shareholder of an S-Corp, 100% shareholder, who did not
If a shareholder of an S-Corp, 100% shareholder, who did not pay himself a salary in 2016 and owes in excess of 48K when the K-1 comes over to personal tax and all the shareholder's monies are in the … read more
PDtax
PDtax
Certified Public Accountant (CPA)
4,729 satisfied customers
Is a tax return less likely to be audited if it's prepared
Is a tax return less likely to be audited if it's prepared by a CPA or simply a tax person? Secondly, our Rotary Club is a 401 C for we have a 401 c 3 Foundation the question is can individual members… read more
socrateaser
socrateaser
1,031 satisfied customers
Is 1120-S K1 non-passive ordinary income also taxable to
Is 1120-S K1 non-passive ordinary income also taxable to self-employment tax? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,558 satisfied customers
Where do you report loans to and from shareholders on the
Where do you report loans to and from shareholders on the tax return for a business (C-Corp)? Where on the tax return do you report interest on a corporate loan to shareholders?… read more
abci168
abci168
Principal
27 satisfied customers
What tax form is filed to report dividends paid by US Corp?
What tax form is filed to report dividends paid by a US Corp which is owned by a Canadian Corp? I think it might be 1042S. I want to know the rate of WH.… read more
abci168
abci168
Principal
27 satisfied customers
Same question on the taxation of interest and dividends (on
Same question on the taxation of interest and dividends (on mutual funds) earned inside a disclaimed portion trust ... disclaimer trust . The original owner of a trust passed and the spouse declined a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Does Subpart F only apply for passive income? I owe a
Hi,Does Subpart F only apply for passive income?I owe a foreign corporation and my accountant told me that it is CFC. I Googled this definition and I agree with it. The part that doesn't seem logic to… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am preparing a partnership tax return for 2016. The
I am preparing a partnership tax return for 2016. The partnership holds commercial rental property. one of the partners, 50%owner, passed away in April 2016 and left his interest to his spouse. i woul… read more
PDtax
PDtax
Certified Public Accountant (CPA)
4,729 satisfied customers
We had passed through income of $2000000 on a government
We had passed through income of $2000000 on a government form in 2007. That pass-through income would have continued through 2012 the year that we divorced in one form or another. My accountant is a d… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
285 satisfied customers
I would like to now about passive income reporting on form
I would like to now about passive income reporting on form 1099. Let's say I have a property managment company that manages my property. And for the month of December my property earns me$1000.00. In … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
I have earned a little over $3000 on passive income through
Hi there! I have earned a little over $3000 on passive income through a website called Hubpages. I'm not sure whether to file that on my return as "other income" under the artist/writer category as I … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x