1041 Walton Trust Case Study Facts: Return Information
Walton Case Study Facts: Introduction
Some data is already entered for you. Use the 1041 Walton Trust Case Study Facts: Data Entry section for instructions and hints on entering any data you are unsure how to enter. You should verify all the information when it has changed or is missing based on the information in these facts.
Fiduciary Basic Return Information
- Select General Information > Basic Return Information > Entity Information.
- Enter the following information:
Name ABC Trust Company
Address Trust Tax Division
401 Channelside Drive
Tampa, FL 33602Type of Trust Complex Trust ($100)
Trust EIN 12-3456789 Date Trust Created 12/16/2009 Fiduciary Employer ID # 98-7654321 - Go to General Information > Paid Preparer/ERO Information, and check the box to suppress the Paid Preparer Information.
Return and Print Options
- Under Return and Print Options, select the General Options tab.
- Select the options to:
- Suppress page numbers
- Print the date/time on each page.
- Select the Print Options tab.
- Select the options to:
- Print Schedule K-1 instructions to the Beneficiary (under K-1 Options at the top of the screen).
- Print a separate statement reflecting the Capital Loss Carryovers (Option 111).
- Select the Compute Options tab.
- Select the following options:
- Foreign Taxes Paid should be totally retained by the trust (Option 208).
- Depreciation should be distributed to the beneficiaries (Option 206).
- Net tax exempt income should be entirely distributed (Option 214).
Income - Dividend Income
| Essilor Optic (all qualified dividends) |
$25,250 |
| Shell Oil (none qualified) |
$22,600 |
| Exxon (all qualified dividends) | $ 5,759 |
| Pillsbury (all qualified dividends) |
$ 3,258 |
Interest
| US Government Interest | US Treasury Note | $ 2,500 |
| Common Trust Fund US Government |
Interest | $ 1,242 |
| Other Interest Income | Third National Bank-CD #27429 | $ 2,500 |
| Third National Bank Savings #12-87930 | $ 495 | |
| Common Trust Fund Other Interest | $ 2,198 | |
| Federally Taxable Resident Municipal Interest |
Taxable Municipal Bond | $ 5,550 |
| Resident Tax-Exempt Interest | Florida Tax-Exempt Bond Interest | $ 1,500 |
| Nonresident Tax Exempt Interest |
Texas Educational Development Bond
(Municipal bond interest) |
$ 1,342 |
| Illinois Municipal Interest | $ 571 |
Rental Property
The trust invested in a rental property (apartment building) and has a passive interest in it. The state of residence is Florida.
| Activity # | 10 | |
| Activity Name |
Palace Property |
|
| Fair Value Rental Days | 365 | |
| Personal Use Days | 0 | |
| Address |
54321 Key West Boulevard |
|
| Trade or Business to Which Net Investment Income Tax Applies |
Yes | |
| Income and Expenses | Rental Income |
$17,500 |
| Advertising | $ 2,250 | |
| Insurance | $ 3,500 | |
| Taxes | $ 500 | |
| Utilities | $ 6,000 | |
| Depreciation (Apartment Building) | Date of Purchase | 03/10/2019 |
| Purchase Price | $175,000 | |
| Method | MACRS 27.5 year |
Gains and Losses
| Carryovers | Long-term Capital Loss | $ 2,437 |
| Short-term Common Trust Fund Gain Loss | ($ 972) | |
| Other Information | Short-term Capital Gain Dividends | $ 3,200 |
| Long-term Capital Gain Dividends | $ 7,500 | |
| Common Trust Fund Gain and Losses |
Long-term Gain | $ 4,936 |
Capital Gains/Losses
| Koho Corporation |
100 Shares of IBM Stock |
|
|---|---|---|
| Sales Price | $16,500 | $ 4,128 |
| Cost | $20,000 | $ 2,947 |
| Date Purchased | 01/01/2010 | 08/12/2014 |
| Date Sold | 07/01/2019 | 01/17/2019 |
Override the holding period to Long-term Investment Property for Koho Corporation.
Deductions
| Allocable Deductions | Fiduciary Fees | $ 2,000 |
| Attorney, Accountant, and Preparer Fees |
$ 450 | |
| Attorney, Accountant, and Preparer Fees |
$ 350 | |
| Other Deductions | $ 279 | |
| 2019 Charitable Deduction Paid |
Leukemia Society of America | $ 5,000 |
| Tax Exempt Interest Override | NONE |
Disbursement to Beneficiaries
There were $1,200 of required distributions and $50,000 of discretionary distributions in 2019.
The override trust accounting income was $60,700.
| Marcy wainwright |
David Wainwright |
Charlotte Wainwright |
|
|---|---|---|---|
| Address | 457 Newks Street
Tampa, FL 33602 |
123 Outpost Way
Tampa, FL 33602 |
789 Jet City Drive
Tampa, FL 33602 |
| SSN | 111-11-1111 | 222-22-2222 | 333-33-3333 |
| Residency | Florida | Florida | Florida |
| Date of Birth | 06/04/1973 | 11/16/1974 | 03/26/1976 |
| Required Disbursement |
$1,200 | ||
| Discretionary Disbursement |
33.333334% | 33.333333% | 33.333333% |
Credits
Foreign Tax Credit
Select the print option to force print Form 1116.
All taxes were paid during 2019.
Income is passive.
| Taxes Paid for Canada |
12/31/2019 |
| Net taxable income outside USA |
$25,250 |
| Taxes paid | $ 500 |
Minimum Tax Credit
Computation of net minimum tax on exclusion items:
- Regular tax from line 55 of prior year
- Schedule I amount is $27,572
Payments and Extensions
Estimated tax payments of $6,900 were made for each of the first four quarters.
Estimates and Penalties
2019 Estimates
- Estimated Taxes should be based on 2019 tax liability.
- Override the first three quarters of the estimated tax vouchers with NONE.
- Refund the entire amount of overpayment, if any.
Underpayment Penalty
- Suppress penalty calculation and do not print form.
Transmittal Letter and Filing Instructions
Generate the transmittal letter and filing instructions only. The IRS filing center should be Cincinnati, Ohio.
Case Study Facts/walton_return_info.htm/TY2019
Last Modified: 03/19/2020
Last System Build: 06/17/2021
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