Form 8283 - Disregarded Entity - Identifying Number?

Forum|Forum|4 years ago
March 16, 2022
3 replies
17 views

Hello!

My client donated a piece of land to a local government, and I'm preparing the Form 8283.
The actual owner of the property was a Single Member LLC owned by a Grantor Trust; so I have a seemingly simple issue, which Name(s) and which "Identifying Number" should I put on the form?

Thanks!

Lacerte Tax

This topic has been closed for replies.

Best answer by BobKamman

If you're filing the 8283 with a 1040, use the SSN. But why was it in an LLC? Is he in the business of buying and selling (or donating) real estate? Or did he just go to some seminar where an "expert" told him an LLC is cheaper and better than liability insurance? Make sure this was a capital asset and not inventory.

qbteachmt

Level 15

Your client, acting trustee, directed that the Trust should dispose of this land accordingly. If this was owned by a Trust, why is there no Entity ID? Was the land held in the trust specifically to be donated? Which tax form are you working on (which type of trust)?

Don't yell at us; we're volunteers

sjrcpa

Level 15

Grantor trusts generally don't need EINs while the grantor is alive.

The more I know the more I don’t know.

BobKammanAnswer

Level 15

If you're filing the 8283 with a 1040, use the SSN. But why was it in an LLC? Is he in the business of buying and selling (or donating) real estate? Or did he just go to some seminar where an "expert" told him an LLC is cheaper and better than liability insurance? Make sure this was a capital asset and not inventory.

J

JZGilleo11Author

Level 4

Thank you all for your input. The Grantor Trust does have an EIN; per regulations "If a trust is a grantor trust, then the grantor is treated as the owner of the assets, the trust is disregarded as a separate tax entity, and all income is taxed to the grantor."

As for the Inventory point, thank you for noting that as it did come up. The parcels donated were part of a larger purchase of land; it was split into 7 lots, 2 to be donated and 5 to be developed for residential construction by whomever buys them.
Fortunately, the FMV from the appraisal is higher than the cost of the 2 parcels, so the land being "Ordinary Income Property" is moot point for calculating the deduction.

So, I will just put the Grantor's SSN on the form. Thanks again!

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