1041-US: Income and deduction sections not completed for an ESBT with only S corporation income (FAQ)

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Question

Why are Form 1041 income and deduction sections not completed for an electing small business trust (ESBT) when the return only has S Corporation income?

Answer

Per the Form 1041 instructions, special rules apply to electing small business trusts. If the trust consists entirely of stock in one or more S corporations, no entries should be made on Form 1041 lines 1 through 22. Instead, a separate schedule should be attached to the return showing the income and deductions. This information will show on the Electing Small Business and Qualified Subchapter S Trust Worksheet.

Related topic: 1041-US: Electing small business trusts FAQs

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