Nominee Trust Withholdings

Technical topics regarding tax preparation.
#1
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39
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25-Aug-2017 12:45pm
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Boston
I have a client consisting of a nominee trust (US Trust) and a foreign corp 100% beneficiary of the trust. The trust owns rental properties in MA deeded in the name of the trust. The corp files an 1120-F every year to claim the rental activity. The trust files nothing because it is a nominee trust.

For 2018, the trust is going to have tax withholdings in the tax ID of the trust. Trying to confirm if we can have the nominee trust file a 1041 for 2018 with the only activity shown as withholdings passing over to the corp. Do you see any problem with this?
 

#2
Smktax  
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517
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25-Apr-2014 12:02pm
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Usa
When you say a “nominee” trust, do you mean that the trustee is holding the property for the benefit of the beneficiary? If yes, isn’t than the same as any other trust? What makes this trust different than any other trust? Why is it a “nominee” trust?

You mention Massachusetts. I assume that you are familiar with Massachusetts business trusts that are taxed as corporations, and I assume that this trust is not one of those.
 

#3
Dennis2  
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816
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18-Feb-2016 11:08am
Location:
New York State
A Mass nominee trust is primarily a real estate holding vehicle. Is technically grantor, so 1041 with grantor statement might work.
 


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