Get Notice 2003 - 33 - Applicable Date Under 645 With Respect To ...

A Section 645 election allows the executor or personal representative of an estate and the trustee of a trust to elect to treat the estate and the trust as one for tax purposes. Generally, estates may elect a fiscal year-end or a calendar year-end, whereas trusts default to a calendar year-end. 645 election gives trustees and executors more flexibility plantemoran.com https://.plantemoran.com › insight › 2017/11 › 645... plantemoran.com https://.plantemoran.com › insight › 2017/11 › 645...

A §645 election allows a qualified revocable trust to use that fiscal year for tax reporting. This allows you to shift the trust's income in a way that can defer the trust's income tax burden from one reporting year to another. Example: Decedent dies on December 1, 2019.

The substance of section 645 is that the trustee of a trust that was revocable by the decedent on the date of his or her death may elect to treat the trust as part of the decedent's probate estate for income tax purposes, provided that certain conditions are met.

The trustees of each qualified revocable trust (QRT) and the executor of the related estate, if any, use this form to make a section 645 election. This election allows a QRT to be treated and taxed (for income tax purposes) as part of its related estate during the election period. About Form 8855, Election to Treat a Qualified Revocable Trust as ... - IRS irs.gov https://.irs.gov › forms-pubs › about-form-8855 irs.gov https://.irs.gov › forms-pubs › about-form-8855

A §645 election allows a qualified revocable trust to use that fiscal year for tax reporting. This allows you to shift the trust's income in a way that can defer the trust's income tax burden from one reporting year to another. §645 Election- What is it and How is it Used? - Trustate trustate.com https://.trustate.com › post › ss645-election-what-is-... trustate.com https://.trustate.com › post › ss645-election-what-is-...

Typically, the estate calendar year starts on the day of the estate owner's death and ends on Dec. 31 of the same year. The executor, however, can file an election to choose a fiscal year instead. A fiscal year means the tax year ends on the last day of the month before the one-year anniversary of death.

A qualified revocable trust (QRT) is any trust (or part of a trust) that, on the day the decedent died, was treated as owned by the decedent under section 676 by reason of a power to revoke that was exercisable by the decedent (determined without regard to section 672(e)).

Availability of a fiscal tax year under IRC Section 644. Without the Section 645 election, trusts are required to adopt a calendar tax year. Estates, on the other hand, may select a fiscal year. This allows deferral of the trust's income tax burden from one reporting year to another. Benefits to Making a Section 645 Election for Trusts — June 15, 2023 lindabury.com https://.lindabury.com › firm › insights › benefits-to... lindabury.com https://.lindabury.com › firm › insights › benefits-to...