REV-1649 Instructions -- Instructions for REV-1649 Schedule O - Deferral/Election of Spousal Trusts
Pennsylvania REV-1649 Instructions -- Instructions for REV-1649 Schedule O — Deferral/Election of Spousal Trusts provide guidance to taxpayers for filing a deferral or election of spousal trusts. These trusts are used to defer income and/or capital gains taxes on assets transferred between spouses. The form is used for filing a Qualified Terminable Interest Property (TIP) trust, a Qualified Revocable Transfer (ART) trust, or a Disclaimer Trust. TIP Trust: A TIP trust enables a married couple to provide for a surviving spouse while maintaining control over the assets in the trust. The surviving spouse is entitled to income from the trust, but the principal remains in the trust and is not available to the surviving spouse. ART Trust: A ART trust allows a married couple to set up a trust that provides income and principal to a surviving spouse with the assets in the trust being passed on to another beneficiary at the surviving spouse’s death. Disclaimer Trust: A disclaimer trust allows a married couple to set up a trust that provides for the income and principal to go to a surviving spouse, but the survivor may disclaim any or all of the trust assets so that they are passed on to another beneficiary at the surviving spouse’s death. To file a deferral or election of a spousal trust, the taxpayer must complete REV-1649 Schedule O. This form requires the taxpayer to provide information regarding the trust, including the trust name, date of the trust, name of the granter, name of the trustee, name of the beneficiary, and the amount of the deferral or election. The taxpayer must also provide the necessary supporting documents, such as a copy of the trust agreement, a copy of the trust’s tax return, and any other documents requested by the Department of Revenue. Once the form is complete, the taxpayer must submit the form and any supporting documents to the Department of Revenue for review and approval. If the form is approved, the taxpayer will receive a letter from the Department of Revenue confirming the deferral or election.
Pennsylvania REV-1649 Instructions -- Instructions for REV-1649 Schedule O — Deferral/Election of Spousal Trusts provide guidance to taxpayers for filing a deferral or election of spousal trusts. These trusts are used to defer income and/or capital gains taxes on assets transferred between spouses. The form is used for filing a Qualified Terminable Interest Property (TIP) trust, a Qualified Revocable Transfer (ART) trust, or a Disclaimer Trust. TIP Trust: A TIP trust enables a married couple to provide for a surviving spouse while maintaining control over the assets in the trust. The surviving spouse is entitled to income from the trust, but the principal remains in the trust and is not available to the surviving spouse. ART Trust: A ART trust allows a married couple to set up a trust that provides income and principal to a surviving spouse with the assets in the trust being passed on to another beneficiary at the surviving spouse’s death. Disclaimer Trust: A disclaimer trust allows a married couple to set up a trust that provides for the income and principal to go to a surviving spouse, but the survivor may disclaim any or all of the trust assets so that they are passed on to another beneficiary at the surviving spouse’s death. To file a deferral or election of a spousal trust, the taxpayer must complete REV-1649 Schedule O. This form requires the taxpayer to provide information regarding the trust, including the trust name, date of the trust, name of the granter, name of the trustee, name of the beneficiary, and the amount of the deferral or election. The taxpayer must also provide the necessary supporting documents, such as a copy of the trust agreement, a copy of the trust’s tax return, and any other documents requested by the Department of Revenue. Once the form is complete, the taxpayer must submit the form and any supporting documents to the Department of Revenue for review and approval. If the form is approved, the taxpayer will receive a letter from the Department of Revenue confirming the deferral or election.