Revocable Trust (Grantor Trust for tax purposes) owns an LLC (therefore SMLLC, technically). Grantors are Husband and Wife. Do we prepare 1040 Sch. C or 1065 to report income/loss of Trust?

Forum|Forum|1 year ago
February 12, 2025
1 reply
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I own an FBA Amazon business that operates as a Single-Member LLC (SMLLC). This LLC is entirely owned by a revocable trust, where my spouse and I are the trustees and beneficiaries. Given this structure, should the business income be reported on Schedule C of our Form 1040, or is a Form 1065 partnership return required due to the involvement of both spouses? We want to ensure we are filing correctly based on IRS rules for disregarded entities, grantor trusts, and husband-wife business ownership.

Business

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sjrcpa

Level 15

Aske the lawyer who set this up for you.

Also,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

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T

taklecpaAuthor

Level 3

I am the professional. I used the first person for ease of conveying the message. We are CPAs, we should know this just as much as any lawyer - this is our field. But based on my hours of reading, I'm getting results that support reporting on both1065 and 1040. I think it's important to note that my client doesn't live in a community property state so I can't use the related exception.

qbteachmt

Level 15

Please, there is no reason to keep starting this topic again and again.

If someone is comfortable helping, you already have this First Time you posted. They will help. Asking three times doesn't get more input. It just gets confusing.

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