Unfortunately, we can’t give specific advice on this channel. You should work with a professional tax preparer who is familiar with your specific circumstances to file the appropriate returns.
It will depend on the trust agreement because paying the income tax on the trust as the grantor is not the test for getting a basis step-up. It's possible to set up grantor trusts that either do get the basis step-up or don't get the basis step-up. You'll need to work with your own advisors to get an answer for your specific situation.
@@strohmeyerlawpllc Thank you for answering the question. Would love to see you do a video showing what is the test for a Grantor Trust. I wonder if one of the test for step-up basis might be the revocability of the trust?
How do I report an overpayment of estimated taxes for a grantor trust? Will I still need a 1041 or just a 1040 since it is a grantor trust?
Unfortunately, we can’t give specific advice on this channel. You should work with a professional tax preparer who is familiar with your specific circumstances to file the appropriate returns.
Does a Grantor Trust where the grantor pays taxes on the trust during his lifetime get step-up basis benefits after the grantor dies ?
It will depend on the trust agreement because paying the income tax on the trust as the grantor is not the test for getting a basis step-up. It's possible to set up grantor trusts that either do get the basis step-up or don't get the basis step-up. You'll need to work with your own advisors to get an answer for your specific situation.
@@strohmeyerlawpllc Thank you for answering the question. Would love to see you do a video showing what is the test for a Grantor Trust. I wonder if one of the test for step-up basis might be the revocability of the trust?