CT-1041 booklet, Connecticut Income Tax Return for Trusts and ...

More documents

Recommendations

Info

Instructions for Schedule CT-1041BPart 1 - Shares of Connecticut FiduciaryAdjustmentPart 1 shows the distribution of the Connecticut fiduciaryadjustment among the beneficiaries and the trust or estate.The shares of the beneficiaries and of the trust or estate inSchedule A, Connecticut Fiduciary Adjustment, Line 13, ofForm CT-1041 are in proportion to their respective shares offederal distributable net income of the trust or estate.Report on Part 1 the names and addresses of all beneficiaries,both resident and nonresident, to whom income is distributablewhether or not the income is taxable to the nonresidentbeneficiaries. Complete this section even if there is nodistribution to the beneficiaries.Columns 1 and 2Enter the name, address, and identifying number of eachbeneficiary of the trust or estate. If the mailing addressdiffers from the home address, give both. If a beneficiary isa nonresident, check the appropriate box to the right of thebeneficiary’s name. If there are more than four beneficiaries,attach a schedule identical to Part 1 for the additionalbeneficiaries.Column 3Enter the respective share of federal distributable net incomeof each beneficiary and of the trust or estate on the appropriatelines. Entries must be made for all resident and nonresidentbeneficiaries.If the distributable net income of a trust or estate for thetaxable year is zero or less than zero, each beneficiary’s sharein the Connecticut fiduciary adjustment is in proportion tothat beneficiary’s share of the income of the trust or estatefor the taxable year and any other amounts properly paid orcredited or required to be distributed during the taxable year.Any balance of the fiduciary adjustment not allocable to anybeneficiary is allocated to the trust or estate.Column 4Determine the percentage interest of each beneficiary and ofthe trust or estate in federal distributable net income of thetrust or estate based upon amounts in Column 3. Enter thatpercentage on the appropriate line of Column 4.Column 5Enter the amount of the Connecticut fiduciary adjustmentfrom Schedule A, Line 13, as the total on Line f,Column 5. The share of each beneficiary and of the trust orestate in the total amount is determined by multiplying thetotal fiduciary adjustment by the Column 4 percentage.If the trust or estate has no federal distributable net income,each beneficiary’s share in the fiduciary adjustment mustbe in proportion to his or her share of the trust or estateincome for the taxable year under local law or the governinginstrument, which is required to be distributed currently,and any amounts of the income distributed during the year.Any balance of the fiduciary adjustment not allocable tobeneficiaries must be allocated to the trust or estate. If theshares in the Connecticut fiduciary adjustment are apportionedin accordance with this paragraph, show the apportionment ina schedule attached to the return.The fiduciary must provide each beneficiary with a scheduleof modifications to include on Schedule 1 of Form CT-1040or Form CT-1040NR/PY.Part 2 - Percentage of Resident‚ NoncontingentBeneficiariesComplete Part 2 to calculate the resident, noncontingentbeneficiary percentage of a full-year resident or part-yearresident inter vivos trust with nonresident, noncontingentbeneficiaries. These trusts are taxed on income derived fromor connected with sources within Connecticut and all otherincome earned during the period of residency multiplied by theresident, noncontingent beneficiary percentage. The percentageis a fraction. The numerator is the total number of resident,noncontingent beneficiaries and the denominator is the sum ofboth resident, noncontingent and nonresident, noncontingentbeneficiaries. An example follows the line instructions. For anexplanation of inter vivos trust and noncontingent beneficiary,see Defi nitions on Page 5.Line 1Enter the number of resident, noncontingent beneficiariesif any.Line 2Enter the number of nonresident, noncontingentbeneficiaries.Line 3Add Line 1 and Line 2.Line 4Divide Line 1 by Line 3 and enter the result as a decimal.Round to four decimal places.If the trust is a full-year resident inter vivos trust, enter thisdecimal on Schedule CT-1041C, Line 11.If the trust is a part-year resident inter vivos trust, enter thisdecimal on Schedule CT-1041FA, Part 1, Line 5.Page 20
Example: Mr. Jones, a Connecticut resident, establishedan irrevocable trust in 2002 for the benefit of his threegrandchildren, Beneficiaries A, B, and C. Since the trustconsists of property transferred from a Connecticutresident, the trust is considered a resident trust. Becausethe trust was not created by the will of the decedent, thetrust is an inter vivos trust. The trust agreement permitsthe trustee to distribute income or corpus, or both, to allthree beneficiaries during the year. This makes all threebeneficiaries noncontingent beneficiaries. BeneficiariesA and B are Connecticut residents, but Beneficiary C is aVermont resident. Since there are one or more nonresident,noncontingent beneficiaries, the fiduciary of this trustmust complete Schedule CT-1041B, Part 2, as follows:1. Indicate the number of residentnoncontingent beneficiaries, if any. 22. Indicate the number of nonresidentnoncontingent beneficiaries. 13. Add Lines 1 and 2. 34. Divide Line 1 by Line 3 and enter decimalto four places. 0.6667The decimal on Line 4, rounded to four decimal places, isentered on Schedule CT-1041C, Line 11.If the trust in the example is a part-year resident trust, theamount on Line 4 is entered on Schedule CT-1041FA,Part 1, Line 5.Instructions for Schedule CT-1041CVerify line references from federal Form 1041 at the time youcomplete this schedule.Resident estates or full-year resident trusts must complete thisschedule to calculate Connecticut taxable income.Resident estates or full year resident trusts with nonresidentbeneficiaries must complete and attach Connecticut ESBTworksheet, if applicable.Resident Trust or Estate With or WithoutNonresident BeneficiariesEach resident estate or full-year resident trust, except forQuick-Filers, must select the applicable box pertaining to thestatus of its beneficiaries. Inter vivos trusts with nonresident,noncontingent beneficiaries calculate Connecticut taxableincome differently than other trusts. See Connecticut TaxableIncome for Certain Inter Vivos Trusts on Page 7.Type of Trust or EstateLine 1Resident trust or estate without nonresident beneficiaries:Check the box and complete Lines 4 through 6 andLine 14.Line 2Resident estate or a resident testamentary trust with oneor more nonresident beneficiaries or an inter vivos trustwith nonresident, contingent beneficiaries but withoutnonresident, noncontingent beneficiaries: Check the box,complete Schedule CT-1041FA, Parts 3 and 2, and completeLines 4 through 6 and Line 14.Line 3Resident inter vivos trust with one or more nonresident,noncontingent beneficiaries: Check the box and completeSchedule CT-1041FA, Parts 2 and 3. Then complete Lines 4through 14.Line 4 - Federal Taxable IncomeEnter the amount of federal taxable income from federalForm 1041, Line 22, and federal ESBT taxable income.Attach federal ESBT worksheet.Line 5 - Trust or Estate’s Share of ConnecticutFiduciary AdjustmentEnter the fiduciary’s share of the Connecticut fiduciaryadjustment from Schedule CT-1041B, Part 1, Line e,Column 5. This may be a positive or negative number.Line 6 - Connecticut Gross Taxable Income asModifiedAdd Line 4 and Line 5.Full-year resident inter vivos trusts with one or morenonresident, noncontingent beneficiaries, complete Lines 7through 14. All others go to Line 14.Line 7 - Trust or Estate’s Share of Income FromConnecticut SourcesEnter the trust or estate’s share of income derived from orconnected with sources within Connecticut from ScheduleCT-1041FA, Part 2, Line e, Column 3, and ConnecticutESBT worksheet. Attach Connecticut ESBT worksheet.Line 8aEnter the amount from Schedule CT-1041FA, Part 3, Line 4,Column B.Line 8bEnter the amount from Schedule CT-1041FA, Part 3, Line 18,Column B.Line 8cSubtract Line 8b from Line 8a.Line 9 - Income From Connecticut Sources asModifiedAdd Line 7 and Line 8c.Page 21
Page 1 and 2: 2009FORMCT-1041ConnecticutIncome Ta
Page 3: Table of ContentsWhat's New .......
Page 8 and 9: and income from property acquired b
Page 10 and 11: Form CT-1041 EXT only extends the t
Page 12 and 13: is greater. If a request for an ext
Page 14 and 15: Line 2 - Connecticut Income TaxMult
Page 16 and 17: The allowable credit must be separa
Page 18 and 19: Beneficiary of Another Trust or Est
Page 22 and 23: Line 10 - Connecticut Taxable Incom
Page 24 and 25: during the nonresidency portion of
Page 26 and 27: Use Form CT-1041 to amend a previou
Page 28: Department of Revenue ServicesState

CT-1041 booklet, Connecticut Income Tax Return for Trusts and ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?