Posted by KennS on February 05, 2001 at 10:41:56:
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Fed Tax ID# and Land Trusts - Posted by KennS
Posted by KennS on February 04, 2001 at 11:55:35:
Are you guys getting a federal tax id number for your land trusts? Bank of America sent out an assumption package and wanted to know what tax id or SSN to use when reporting interest to the IRS.
If I should get it, should I use my trustee as the underlying SSN?
- Kenn
Not needed - Posted by Bill Gatten
Posted by Bill Gatten on February 04, 2001 at 14:35:39:
The Trustee in a bona fide land trust has no IRS income tax reporting responsibility. The trust beneficiaries are seen by the IRS as the owners of the real estate and therefore are responsible for their own income tax reporting (Sched. C, 1040, etc.).
If you’re filing a Notice of Fiducairy Responsibliy (lots of luck, if you can ever get the IRS to accept one…we can’t, though we’ve sent a 56A with every PACTRust we’ve ever done…they always come back), then you’d need the tax ID number for the entity holding title…but never for income tax reporting purposes.
Bill Gatten