Instructions For Utah Fiduciary Return (Tc-41) - 2013 Page 32
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332013 Utah Fiduciary Income Tax
Page 31
Qualifi ed Funeral Trust Information and Instructions
Who Must File
Making the Election
The trustee of a trust that has elected to be taxed as a
The trustee elects to treat a trust as a QFT by fi ling federal
qualifi ed funeral trust (QFT) fi les federal Form 1041-QFT
Form 1041-QFT by the due date (including extensions).
to report the income, deductions, gains, losses, etc., and
Composite Return
income tax liability of the QFT. The trustee can use Utah
A trustee may fi le a single, composite Utah Form TC-41
form TC-41 to fi le for a single QFT, or for multiple QFTs
for all QFTs for which he or she is the trustee, includ-
having the same trustee following the instructions under
ing QFTs that had a short tax year. Prepare a schedule
Composite Return on this page.
that includes the following information for each QFT (or
Pre-need funeral trusts that do not qualify as QFTs
separate interest treated as a QFT).
should use the regular instructions for Utah Form TC-
•
The number of QFTs in the composite return.
41, Utah Fiduciary Income Tax Return.
•
The owner or benefi ciary’s name. If the trust has
Qualifi ed Funeral Trust (QFT)
more than one benefi ciary, separate the trust into
A QFT is a domestic trust that meets all of the following
shares held by the separate benefi ciaries. The same
requirements:
information used on the federal Form 1041-QFT can
•
It arose from a contract with a person who provides
be used to compute Utah tax.
funeral or burial services or property necessary to
•
The type and gross amount of income earned by the
provide such services.
QFT. For capital gains, identify the net short-term
•
The sole purpose of the trust is to hold, invest and
capital gain, net long-term capital gain, 28% rate
reinvest funds in the trust and to use those funds
gain, and unrecaptured section 1250 gain.
solely to pay for funeral or burial services or prop-
•
The type and amount of each deduction and credit
erty to provide such services for the benefi t of the
allocable to the QFT.
benefi ciaries of the trust.
•
The Utah tax calculation for each QFT. You must
•
The only benefi ciaries are individuals for whom such
complete form TC-41, page 1, lines 15 through 22
services or property is to be provided at their death
separately for each QFT.
under the contracts described above.
•
The Utah tax payments made for each QFT.
•
The trustee elects or previously elected to treat the
trust as a QFT, and not as a grantor trust.
•
If the QFT terminated during the year, the termination
date.
•
If the QFT election had not been made, the trust
would have been treated as owned by the contracts’
You can use the same information and schedules from
purchasers under the IRC grantor trust provisions.
the federal Form 1041-QFT to compute Utah tax. Figure
However, a trust that is not owned by the purchaser
the taxable income separately for each QFT using each
solely because of the death of an individual shall
QFT’s share of the amounts.
be treated as meeting this requirement during the
Attach the composite return schedules to your TC-41.
60-day period beginning the day of that individual’s
Tax Computation
death.
Follow the line-by-line instructions except for computing
If a QFT has multiple benefi ciaries, each benefi ciary’s
the tax. Use a separate schedule to calculate the Utah
separate interest under a contract is treated as a sepa-
tax for each QFT using the 5% tax rate for each QFT.
rate QFT for the purpose of fi guring the tax and fi ling this
Enter the sum of the tax for all QFTs (after subtracting
return. Each benefi ciary’s share of the trust’s income is
any estate or trust tax credit) on line 22.
determined in accordance with the benefi ciary’s interest
in the trust.
Whenever these instructions refer to a trust or QFT,
it includes such separate interests that are treated as
separate QFTs.
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