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March 23, 2024
Question

Net Investment Tax on Grantor Trust

  • March 23, 2024
  • 1 reply
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I'm preparing a return for an Irrevocable Grantor Trust.  It is my understanding that Grantor Trusts do not have to pay the 3.8% investment tax, but turbotax business calculates the tax on the investment income of the trust return I'm preparing.  Do I just override and show $0??

1 reply

March 23, 2024
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kurtzr824Author
March 23, 2024

Yes, I indicated both Grantor Trust and Complex Trust as the interest, dividend, and capital gains income will not be distributed to beneficiaries.  Turbotax did calculated income tax to be paid by the trust as well as the 3.8% investment income tax.

March 23, 2024
No text available