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Taxes on trust distribution

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  • Taxes on trust distribution

    Dear WCI forum,

    Long time reader, first time poster and I'd really appreciate some advice on tax preparation. My wife received a 15k distribution from a trust in 2016. We have not yet received a K1, and the accountant who manages the trust told us that we could go ahead and file our taxes without the K1 since the trust had paid all required taxes on the distribution. The trust holds a 25% stake in a family partnership, which owned and sold a piece of land in 2016. The partnership and land are located in CT and we live in MA. The vast majority of the distribution represents long term capital gains. My questions are:

    1) Can I file my federal and MA state taxes without the K1? Would I need to file an amendment once I receive the K1?

    2) Do I need to file a CT tax return as a nonresident?

    Thanks very much for any advice you might be able to offer!

    - White coat wannabe

  • #2
    Sorry, but this question is beyond the scope of this forum (way beyond). I would rely on the advice of your personal accountant but yes, you will have to amend your return for the K1 if it shows any reportable information (and, quite frankly, I would be surprised if it didn't but the accountant for the trust should know what s/he is talking about).

    As for the CT return, I will defer to the advice of your CPA and what is reported on your K1 for CT. It will hold the information.

    OT - since you are a physician, why are you a white coat wannabe?
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


    • #3
      Thanks for your response, Johanna. I'll speak with the trust accountant and work to figure out if we'd be better with an accountant to prepare our own return.

      I guess I should say Jim Dahle wannabe - he'd have read (and understood) all relevant tax code by now, whereas I haven't found it so simple..

      Thanks again!


      • #4
        Ahhh, I see :-)
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087


        • #5
          You really need to consult a qualified CPA and/or attorney in your area.

          "Trust" could mean so many different things here.  Only after reviewing the specific documents would anyone be able to give you a good answer.