IRS Form 1041-QFT "U.S. Income Tax Return for Qualified Funeral Trusts"

IRS Form 1041-QFT is a U.S. Department of the Treasury - Internal Revenue Service - issued form also known as the "U.s. Income Tax Return For Qualified Funeral Trusts".

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1041-QFT
OMB No. 1545-1593
Form
U.S. Income Tax Return for Qualified Funeral Trusts
2018
Department of the Treasury
Go to www.irs.gov/Form1041QFT for the latest information.
Internal Revenue Service
For calendar year 2018 or short year beginning
, 2018, and ending
, 2018.
Part I
General Information
1
Name of trust or other entity filing return
2 Employer identification number (EIN)
3a Name and title of trustee
3b Number, street, and room or suite no. (If a P.O. box, see the instructions.)
3c City or town, state, and ZIP code
4 Number of QFTs included on this return
5
Check applicable boxes:
Initial return
Amended return
Final return
Change in the fiduciary or fiduciary’s name
Change in fiduciary’s address
Part II
Tax Computation
1a Interest income .
1a
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b Tax-exempt interest. Don’t include on line 1a .
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1b
2 a Total ordinary dividends .
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2a
b Qualified dividends .
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3
3
Capital gain or (loss) (attach Schedule D (Form 1041))
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4
Other income. List type and amount
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5
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Total income. Combine lines 1a, 2a, 3, and 4
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6
Taxes
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Trustee fees .
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7
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Attorney, accountant, and return preparer fees .
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9
Other deductions
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9
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Total deductions. Add lines 6 through 9 .
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Taxable income. Subtract line 10 from line 5 .
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12
Tax. (If this is a composite return, check here
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13
Credits (see instructions). Specify the credits claimed
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Subtract line 13 from line 12 .
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15
Net Investment Income Tax from Form 8960, line 21 .
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15
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Total tax. Add lines 14 and 15 .
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Payments (see instructions) .
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Tax due. If line 17 is smaller than line 16, enter amount owed
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Overpayment. If line 17 is larger than line 16, enter amount overpaid .
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19
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Amount of line 19 to be: a Credited to 2019 estimated tax
b Refunded
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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
Sign
and belief, it is true, correct, and complete. Declaration of preparer (other than trustee) is based on all information of which preparer has any knowledge.
Here
May the IRS discuss this return
with the preparer shown below
Signature of trustee or officer representing trustee
Date
(see instructions)?
Yes
No
Print/Type preparer’s name
Preparer’s signature
Date
PTIN
Paid
Check
if
self-employed
Preparer
Firm’s name
Firm’s EIN
Use Only
Firm’s address
Phone no.
1041-QFT
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 25368F
Form
(2018)
1041-QFT
OMB No. 1545-1593
Form
U.S. Income Tax Return for Qualified Funeral Trusts
2018
Department of the Treasury
Go to www.irs.gov/Form1041QFT for the latest information.
Internal Revenue Service
For calendar year 2018 or short year beginning
, 2018, and ending
, 2018.
Part I
General Information
1
Name of trust or other entity filing return
2 Employer identification number (EIN)
3a Name and title of trustee
3b Number, street, and room or suite no. (If a P.O. box, see the instructions.)
3c City or town, state, and ZIP code
4 Number of QFTs included on this return
5
Check applicable boxes:
Initial return
Amended return
Final return
Change in the fiduciary or fiduciary’s name
Change in fiduciary’s address
Part II
Tax Computation
1a Interest income .
1a
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b Tax-exempt interest. Don’t include on line 1a .
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1b
2 a Total ordinary dividends .
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2a
b Qualified dividends .
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3
3
Capital gain or (loss) (attach Schedule D (Form 1041))
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4
Other income. List type and amount
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5
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Total income. Combine lines 1a, 2a, 3, and 4
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6
Taxes
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Trustee fees .
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Attorney, accountant, and return preparer fees .
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9
Other deductions
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9
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Total deductions. Add lines 6 through 9 .
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10
11
Taxable income. Subtract line 10 from line 5 .
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12
Tax. (If this is a composite return, check here
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Credits (see instructions). Specify the credits claimed
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14
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Subtract line 13 from line 12 .
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15
Net Investment Income Tax from Form 8960, line 21 .
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15
16
Total tax. Add lines 14 and 15 .
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Payments (see instructions) .
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Tax due. If line 17 is smaller than line 16, enter amount owed
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19
Overpayment. If line 17 is larger than line 16, enter amount overpaid .
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19
20
Amount of line 19 to be: a Credited to 2019 estimated tax
b Refunded
20
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
Sign
and belief, it is true, correct, and complete. Declaration of preparer (other than trustee) is based on all information of which preparer has any knowledge.
Here
May the IRS discuss this return
with the preparer shown below
Signature of trustee or officer representing trustee
Date
(see instructions)?
Yes
No
Print/Type preparer’s name
Preparer’s signature
Date
PTIN
Paid
Check
if
self-employed
Preparer
Firm’s name
Firm’s EIN
Use Only
Firm’s address
Phone no.
1041-QFT
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 25368F
Form
(2018)
2
Form 1041-QFT (2018)
Page
General Instructions
• The sole purpose of the trust is to hold,
Note: When calculating NIIT for a composite
invest, and reinvest funds in the trust and to
return, treat each beneficiary’s interest in each
Section references are to the Internal
use those funds solely to pay for funeral or
QFT (within the meaning of section 685) as a
Revenue Code.
burial services or property to provide such
separate trust.
services for the benefit of the beneficiaries of
What’s New
When To File
the trust.
Global intangible low-taxed income. The
File Form 1041-QFT by April 15, 2019. The
• The only beneficiaries of the trust are
Tax Cuts and Jobs Act of 2017 (TCJA) (P.L.
due date for a composite return is also April
individuals for whom such services or
115-97) requires a U.S. shareholder of any
15, 2019, even if the return includes QFTs that
property are to be provided at their death
controlled foreign corporation to include in
terminated during the year. If you are filing for
under the contracts described above.
gross income its global intangible low-taxed
a short year, file Form 1041-QFT by the 15th
• The only contributions to the trust are
income (GILTI). For more information, see the
day of the 4th month following the close of
contributions by or for such beneficiaries’
instructions for line 4, Other Income, later.
the short year. If the due date falls on a
benefit.
Saturday, Sunday, or a legal holiday, file by
Deferred foreign income tax. The TCJA
• The trustee makes or previously had made
the next business day.
requires a U.S. shareholder to pay a transition
the election to treat the trust as a QFT.
tax on the untaxed foreign earnings of certain
Private Delivery Services (PDSs)
specified foreign corporations as if those
• The trust would have been treated as owned
You can use certain PDSs designated by the
earnings had been repatriated to the United
by the purchasers of the contracts under the
IRS to meet the “timely mailing as timely
States. For more information, see Pub. 5292,
grantor trust provisions of the Code if the QFT
filing” rule for tax returns. Go to www.irs.gov/
How to Calculate Section 965 Amounts and
election hadn’t been made.
PDS for the current list of designated services.
Elections Available to Taxpayers.
Note: A trust that isn’t treated as owned by
The PDSs can tell you how to get written
Tax rate schedule for trusts and estates.
the purchaser solely because of the death of
proof of the mailing date.
The tax rates have changed for 2018. See
an individual will be treated as meeting this
Line 12—Tax, later.
requirement during the 60-day period
For the IRS mailing address to use if you’re
beginning on the date of that individual’s
using a PDS, go to www.irs.gov/
Miscellaneous itemized deductions subject
death.
PDSStreetAddresses.
to the 2% floor. In 2018, expenses that
qualify as miscellaneous itemized deductions
If a QFT has multiple beneficiaries, each
PDSs can’t deliver items to P.O.
!
subject to the 2% floor are no longer
beneficiary’s separate interest under a
boxes. You must use the U.S.
deductible.
contract is treated as a separate QFT for the
Postal Service to mail any item to
purpose of figuring the tax and filing this
an IRS P.O. box address.
CAUTION
Future Developments
return. Each beneficiary’s share of the trust’s
income is determined in accordance with the
For the latest information about developments
Extension of Time To File
beneficiary’s interest in the trust. A
related to Form 1041-QFT and its instructions,
beneficiary’s interest in a trust may be
such as legislation enacted after they were
Use Form 7004, Application for Automatic
determined under any reasonable method.
published, go to www.irs.gov/Form1041QFT.
Extension of Time To File Certain Business
Income Tax, Information, and Other Returns,
Whenever these instructions refer to a trust
Reminder
to get an extension of time to file. An
or QFT, it includes such separate interests
extension of time to file a return doesn’t
that are treated as separate QFTs.
Net investment income tax (NIIT). An estate
extend the time to pay the tax.
or trust may be subject to NIIT. NIIT is a 3.8%
Making the Election
tax on the lesser of an estate’s or trust’s
Where To File
undistributed net investment income or the
The trustee makes the election to treat a trust
excess of the estate’s or trust’s adjusted
File Form 1041-QFT at the following address.
as a QFT by filing Form 1041-QFT for the
gross income over a specified threshold
trust by the due date (including extensions).
Department of Treasury
amount. NIIT may need to be included when
Internal Revenue Service
You may elect QFT status for a trust’s first
figuring estimated tax. In addition, there are
Kansas City, MO 64999
eligible year or for any subsequent year. Once
special rules when figuring NIIT for a
made, the election can’t be revoked without
Who Must Sign
composite return. See Composite Return,
the consent of the IRS.
later.
Trustee
Composite Return
Purpose of Form
The trustee, or an authorized representative,
A trustee may file a single, composite Form
The trustee of a trust that has elected to be
must sign Form 1041-QFT.
1041-QFT for some or all QFTs of which he or
taxed as a qualified funeral trust (QFT) files
she is the trustee, including QFTs that had a
Paid Preparer
Form 1041-QFT to report the income,
short tax year.
deductions, gains, losses, and tax liability of
Generally, anyone who is paid to prepare a
You must attach a statement to a
the QFT. The trustee can use the form to
tax return must sign the return and fill in the
composite Form 1041-QFT that includes the
report information for a single QFT or for
other blanks in the Paid Preparer Use Only
following information for each QFT (or
multiple QFTs having the same trustee. If filing
area of the return. The person required to sign
separate interest treated as a separate QFT).
Form 1041-QFT for multiple QFTs, please see
the return must:
the rules discussed under Composite Return,
• The name of the owner or the beneficiary. If
• Complete the required preparer information,
later.
you list the name of the owner and that trust
• Sign it in the space provided for the
has more than one beneficiary, you must
Pre-need funeral trusts that don’t qualify as
preparer’s signature, and
separate the trust into shares held by the
QFTs should see the Instructions for Form
• Give you a copy of the return in addition to
separate beneficiaries.
1041, U.S. Income Tax Return for Estates and
the copy to be filed with the IRS.
Trusts, for their filing requirements.
• The type and gross amount of each type of
Anyone who is paid to prepare the trust’s
income earned by the QFT for the tax year.
Qualified Funeral Trust
return must enter their PTIN in the Paid
For capital gains, identify separately the
Preparer Use Only section. The PTIN entered
amount of (a) net short-term capital gain,
A QFT is a domestic trust that meets all of
must have been issued after September 27,
(b) net long-term capital gain, (c) 28% rate
the following requirements.
2010. For information, see Form W-12, IRS
gain, and (d) unrecaptured section 1250 gain.
• The trust arose as a result of a contract with
Paid Preparer Tax Identification Number
• The type and amount of each deduction and
a person engaged in the trade or business of
(PTIN) Application and Renewal.
credit allocable to the QFT.
providing funeral or burial services or property
to provide such services.
• The tax and payments made for each QFT.
• The termination date for each QFT that was
terminated during the year.
3
Form 1041-QFT (2018)
Page
Specific Instructions
Paid Preparer Authorization
Estimated Tax
If the trustee wants to allow the IRS to
Generally, a QFT must pay estimated income
Part I—General Information
discuss the QFT’s 2018 tax return with the
tax for 2019 if it expects to owe, after
paid preparer who signed it, check the “Yes”
subtracting withholding and credits, at least
Line 1—Name of Trust
box in the signature area of the return. This
$1,000 in tax. Estimated tax liability is figured
Copy the exact name from the Form SS-4,
authorization applies only to the individual
for the individual QFT, and not for a
Application for Employer Identification
whose signature appears in the Paid Preparer
composite return taken as a whole. For details
Number, used to apply for the EIN you are
Use Only section of the QFT’s return. It
and exceptions, see Form 1041-ES,
using to file Form 1041-QFT.
doesn’t apply to the firm, if any, shown in that
Estimated Income Tax for Estates and Trusts.
section.
Line 2—Employer Identification
Interest and Penalties
If the “Yes” box is checked, the trustee is
Number (EIN)
authorizing the IRS to call the paid preparer to
Interest
If the QFT isn’t filing as part of a composite
answer any questions that may arise during
Interest is charged on taxes not paid by the
return, use the EIN of the QFT. If the QFT
the processing of the QFT’s return. The
due date, even if an extension of time to file is
doesn’t have an EIN, it must apply for one.
trustee is also authorizing the paid preparer to:
granted. Interest is also charged on the
Every trustee that elects to file a composite
• Give the IRS any information that’s missing
failure-to-pay penalty, failure-to-file penalty,
return must apply for an EIN to be used only
from the QFT’s return;
the accuracy-related penalty, and the fraud
for filing Form 1041-QFT. A trustee must use
• Call the IRS for information about the
penalty. The interest charge is figured at a
a separate EIN for every Form 1041-QFT it
processing of the QFT’s return or the status
rate determined under section 6621.
files.
of its refund or payment(s); and
A QFT without an EIN can apply for one.
Late Filing of Return
• Respond to certain IRS notices that the
• Online—A QFT can receive an EIN by
The law provides a penalty of 5% of the tax
trustee has shared with the preparer about
Internet and use it immediately to file a return.
due for each month, or part of a month, up to
math errors, offsets, and return preparation.
Go to the IRS website at www.irs.gov/EIN and
a maximum of 25% of the tax due, for each
The trustee isn’t authorizing the paid
click on “Apply for an EIN Online.”
month the return isn’t filed. If the return is
preparer to receive any refund check, bind
more than 60 days late, the minimum penalty
• By mail or fax—Send in a completed Form
the QFT to anything (including any additional
is the smaller of $210 or the tax due.
SS-4. Form SS-4 can be obtained online at
tax liability), or otherwise represent the QFT
www.irs.gov/OrderForms.
The penalty won’t be imposed if you can
before the IRS.
show that the failure to file on time was due to
If the QFT hasn’t received its EIN by the
The authorization will automatically end no
reasonable cause. If you receive a notice
time the return is due, write “Applied for” in
later than the due date (without regard to
about penalty or interest after filing the return,
the space for the EIN.
extensions) for filing the QFT’s 2019 tax
send us an explanation and we will determine
Line 3—Address
return. If the trustee wants to expand the paid
whether you meet the reasonable cause
preparer’s authorization or revoke the
criteria. Do not attach an explanation to the
Include the suite, room, or other unit number
authorization before it ends, see Pub. 947,
return.
after the street address. If the post office
Practice Before the IRS and Power of
doesn’t deliver mail to the street address and
Late Payment of Tax
Attorney.
you have a P.O. box, show the box number
Generally, the penalty for not paying the tax
instead of the street address.
Accounting Methods
/
when due is
1
of 1% of the unpaid amount
2
If you want a third party (such as an
Figure taxable income using the method of
for each month or part of a month that it
accountant or an attorney) to receive mail for
accounting regularly used in keeping the
remains unpaid. The maximum penalty is 25%
the QFT, enter “C/O” on the street address
QFT’s books and records. Generally,
of the unpaid amount. The penalty applies to
line, followed by the third party’s name and
permissible methods include the cash
any unpaid tax on the return. Any penalty is in
street address or P.O. box.
method, the accrual method, or any other
addition to interest charges on late payments.
If you change your address (including a new
method authorized by the Internal Revenue
Underpaid Estimated Tax
“in care of” name and address) after filing
Code. In all cases, the method used must
Form 1041-QFT, use Form 8822-B, Change of
clearly reflect income.
If the trustee underpaid estimated tax, use
Address or Responsible Party — Business, to
Form 2210, Underpayment of Estimated Tax
Generally, the QFT may change its
notify the IRS.
by Individuals, Estates, and Trusts, to figure
accounting method (for income as a whole or
any penalty.
Line 4—Number of QFTs
for any material item) only by getting consent
on Form 3115, Application for Change in
If you include interest or any of
If this is a composite return, enter the total
!
Accounting Method. For more information, see
these penalties with your payment,
number of QFTs (including separate interests
Pub. 538, Accounting Periods and Methods.
identify and enter these amounts
treated as separate QFTs) included on the
CAUTION
in the bottom margin of Form
return.
Accounting Period
1041-QFT. Don’t include the interest or
Part II—Tax Computation
All QFTs must use a calendar year as their
penalty amount in the balance of tax due on
accounting period.
line 17.
Composite Return
Rounding Off to Whole Dollars
Other Penalties
If this is a composite return,
!
enter in Part II the totals for all the
You may round off cents to whole dollars on
Other penalties can be imposed for
QFTs included on the return.
your return and statements. If you do round to
negligence, substantial understatement of tax,
whole dollars, you must round all amounts. To
and fraud. See Pub. 17, Your Federal Income
CAUTION
round, drop amounts under 50 cents and
Tax, for details on these penalties.
Income
increase amounts from 50 to 99 cents to the
Final Form 1041
Line 2a—Total Ordinary Dividends
next dollar. For example, $1.39 becomes $1
and $2.50 becomes $3. If you have to add
If you have an existing EIN(s) that you
Report all ordinary dividends received during
two or more amounts to figure the amount to
previously used for filing Form 1041 and that
the tax year.
enter on a line, include cents when adding the
you won’t use again (that is, for QFTs
Report capital gain distributions on
amounts and round off only the total.
included in a composite return), you should
Schedule D (Form 1041), line 13.
file Form 1041 and check the final return box.
4
Form 1041-QFT (2018)
Page
Line 12—Tax
Line 2b—Qualified Dividends
If you elect to pay the section 965 net tax
liability in installments under section 965(h):
Enter on line 2b the amount reported on line
Tax rate schedule. Unless the instructions
2a that is a qualified dividend. A qualified
• Complete and attach Form 965-A, Individual
that follow for Schedule D or Composite
dividend is a dividend received during the tax
Report of Net 965 Tax Liability;
Return apply, figure the tax using the Tax
year from (a) a domestic corporation, or (b) a
Rate Schedule below. Enter the tax on line 12.
• Increase line 17 by the amount of current
qualified foreign corporation. A qualified
year net section 965 liability to be paid in
dividend doesn’t include any dividend from a
2018 Tax Rate Schedule
installments (from Form 965-A, Part I, column
corporation if the corporation is (or was)
(i)); and
exempt from income tax under section 501 or
If taxable
• Decrease line 17 by the current year section
521 for the tax year during which the
income
But
Of the
965 installment payments (from Form 965-A,
distribution was made, any amount allowed
is:
not
amount
Part II, column (k)).
as a deduction under section 591, or any
Over—
over
Its tax is:
over—
dividend described under section 404(k).
Line 18—Tax Due
$0
$2,550
10%
$0
Exception. Some dividends may be reported
2,550
9,150
$255 +
24%
2,550
You must pay the tax in full when the return is
to the trust as qualified dividends but aren’t
9,150
12,500
1,839 +
35%
9,150
filed. Make the check or money order payable
qualified dividends. See the instructions for
12,500
12,500
3,011.50 +
37%
- - - -
to “United States Treasury.” Write the EIN
line 2b(2) in the 2018 Instructions for Form
from line 2 of the form and “2018 Form
Schedule D. If the QFT had both a net
1041 for more information.
1041-QFT” on the payment. Enclose, but
capital gain and any taxable income, or any
don’t attach, the payment with Form
Line 4—Other Income
qualified dividends and any taxable income,
1041-QFT.
Enter all other types of income not included
complete Part V of Schedule D (Form 1041),
on line 1a, 2a, or 3. List the type and amount
and then enter the tax from line 45 of
Paperwork Reduction Act Notice. We ask
on an attached statement if the QFT(s) has
Schedule D on line 12.
for the information on this form to carry out
more than one item.
Composite return. If this is a composite
the Internal Revenue laws of the United
If you are reporting GILTI, include it on the
return, check this box and enter on line 12
States. You are required to give us this
attached statement. You must also complete
the total of the tax figured separately for each
information. We need it to ensure that you are
and attach Form 8992, Global Intangible Low-
QFT using either the 2018 Tax Rate Schedule
complying with these laws and to allow us to
Taxed Income (GILTI).
above or Schedule D (Form 1041).
figure and collect the right amount of tax.
If you are reporting a section 965(a)
Line 13—Credits
You aren’t required to provide the
inclusion, enter the net amount (the section
information requested on a form that is
Specify the type of credit being claimed and
965(a) inclusion less the section 965(c)
subject to the Paperwork Reduction Act
attach any required credit forms. If you are
deduction) on line 4. You must also complete
unless the form displays a valid OMB control
claiming more than one type of credit, attach
and attach Form 965, Inclusion of Deferred
number. Books or records relating to a form
a statement listing the type and amount of
Foreign Income Upon Transition to
or its instructions must be retained as long as
each credit claimed. See the Instructions for
Participation Exemption System, and related
their contents may become material in the
Form 1041 for details on the credits that may
schedules.
administration of any Internal Revenue law.
be claimed.
Generally, tax returns and return information
Deductions
Line 15—Net Investment Income Tax
are confidential, as required by section 6103.
Allocation of Deductions for Tax-Exempt
For tax years beginning on or after January 1,
The time needed to complete and file this
Income
2013, a QFT may be liable for the NIIT
form will vary depending on individual
Generally, no deduction that would otherwise
enacted under section 1411. To determine if
circumstances. The estimated average time is:
be allowable is allowed for any expense that
this tax applies, see Form 8960, Net
Recordkeeping
.
.
.
.
10 hr., 2 min.
is allocable to tax-exempt income, such as
Investment Income Tax—Individuals, Estates,
Learning about the law
interest on state or local bonds.
and Trusts, and its instructions.
or the form .
.
.
.
.
.
2 hr., 18 min.
Exception. State income taxes and business
Line 16—Total Tax
Preparing the form
.
.
.
5 hr., 21 min.
expenses that are allocable to tax-exempt
If the QFT owes any additional taxes (for
interest are deductible.
Copying, assembling,
example, alternative minimum tax, recapture
and sending the form
Expenses that are directly allocable to
taxes, etc.), include these taxes on line 16. To
to the IRS .
.
.
.
.
.
.
. 48 min.
tax-exempt income are allocable only to
the left of the entry space, write the type and
tax-exempt income. A reasonable proportion
If you have comments concerning the
amount of the tax. Also attach to Form
of expenses indirectly allocable to both tax-
accuracy of these time estimates or
1041-QFT any forms required to figure these
exempt income and other income must be
suggestions for making this form simpler, we
taxes (for example, Schedule I (Form 1041)).
allocated to each class of income.
would be happy to hear from you. You can
See the Instructions for Form 1041 for more
send us comments from www.irs.gov/
Limitations on Deductions
details on additional taxes that may apply.
FormComments. Or you can send your
Generally, the amount a QFT has “at-risk”
Line 17—Payments
comments to Internal Revenue Service, Tax
limits the loss it can deduct in any tax year.
Forms and Publications, 1111 Constitution
Include on line 17 any of the following.
Also, section 469 and its regulations generally
Ave. NW, IR-6526, Washington, DC 20224.
limit losses from passive activities to the
• Estimated tax payments made for 2018.
Don’t send the tax form to this address.
amount of income derived from all passive
• Tax paid with a request for an extension of
Instead, see Where To File, earlier.
activities. Similarly, credits from passive
time to file.
activities are generally limited to the tax
• Federal income tax withheld (for example,
attributable to such activities.
backup withholding).
For details on these and other limitations on
• Credit for tax paid on undistributed capital
deductions, see Deductions in the
gains. Also attach Copy B of Form 2439,
Instructions for Form 1041.
Notice to Shareholder of Undistributed
Line 9—Other Deductions
Long-Term Capital Gains.
Attach your own statement, listing by type
and amount all allowable deductions.
QFTs aren’t allowed a deduction
!
for a personal exemption.
CAUTION
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