What are the year-end moves you should make if you are a trustee?
- When you are collecting your personal tax data, watch for items sent that are issued in a trust ID number. Once you have collected all of your data, connect with your tax team
- Send the most accurate and current forms to help speed up the tax return process. Many times 1099s for investments are amended. Please let us know if that happens.
- If you have any significant changes from 2022 or expect changes for 2023, be sure to let your tax team know that, too! We want to make sure to calculate any future estimated tax payments as accurately as possible. Relying on the prior year may not be the best approach.
- Remember that trusts are limited to $10,000 in deductions for state, local and real estate taxes. It’s more important than ever to pay these taxes out of the trust if the trust owns the real estate and pay the trust’s income taxes out of its assets.
- Miscellaneous deductions, including tax preparation fees, are not deductible. Trusts can still deduct the cost of income tax preparation – this does not fall under the miscellaneous itemized category. It is important that the trust pay its own tax preparation fees in order to deduct this cost.
- Be sure to take any required distributions for the trust by 12/31/2023. Please report this amount to your tax team.
Our tax team is here to help. If you’d like more information on becoming a Corrigan Krause client, email us at email@example.com.