Form Tc-41 - Fiduciary Income Tax - 2012 Page 29
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312012 Utah Fiduciary Income Tax
Page 27
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
qualifi ed funeral trust (QFT) fi les federal Form 1041-QFT
federal Form 1041-QFT by the due date (including
to report the income, deductions, gains, losses, etc.,
extensions).
and income tax liability of the QFT. The trustee can use
Composite Return
Utah form TC-41 to fi le for a single QFT, or for multiple
A trustee may fi le a single, composite Utah Form TC-41
QFTs having the same trustee following the instructions
for all QFTs for which he or she is the trustee, including
under Composite Return on this page.
QFTs that had a short tax year. Prepare a schedule
Pre-need funeral trusts that do not qualify as QFTs
that includes the following information for each QFT (or
should use the regular instructions for Utah Form TC-
separate interest treated as a QFT).
41, Utah Fiduciary Income Tax Return.
•
The number of QFTs in the composite return.
Qualifi ed Funeral Trust (QFT)
•
The owner or benefi ciary’s name. If the trust has
A QFT is a domestic trust that meets all of the following
more than one benefi ciary, separate the trust into
requirements:
shares held by the separate benefi ciaries. The same
•
It arose from a contract with a person who provides
information used on the federal Form 1041-QFT can
funeral or burial services or property necessary to
be used to compute Utah tax.
provide such services.
•
The type and gross amount of income earned by the
•
The sole purpose of the trust is to hold, invest and
QFT. For capital gains, identify the net short-term
reinvest funds in the trust and to use those funds
capital gain, net long-term capital gain, 28% rate
solely to pay for funeral or burial services or prop-
gain, and unrecaptured section 1250 gain.
erty to provide such services for the benefi t of the
•
The type and amount of each deduction and credit
benefi ciaries of the trust.
allocable to the QFT.
•
The only benefi ciaries are individuals for whom such
•
The Utah tax calculation for each QFT. You must
services or property is to be provided at their death
complete form TC-41, page 1, lines 15 through 22
under the contracts described above.
separately for each QFT.
•
The trustee elects or previously elected to treat the
•
The Utah tax payments made for each QFT.
trust as a QFT, and not as a grantor trust.
•
If the QFT terminated during the year, the termina-
•
If the QFT election had not been made, the trust
tion date.
would have been treated as owned by the contracts’
purchasers under the IRC grantor trust provisions.
You can use the same information and schedules from
However, a trust that is not owned by the purchaser
the federal Form 1041-QFT to compute Utah tax. Figure
solely because of the death of an individual shall
the taxable income separately for each QFT using each
be treated as meeting this requirement during the
QFT’s share of the amounts.
60-day period beginning the day of that individual’s
Attach the composite return schedules to your TC-41.
death.
Tax Computation
If a QFT has multiple benefi ciaries, each benefi ciary’s
Follow the line-by-line instructions except for computing
separate interest under a contract is treated as a sepa-
the tax. Use a separate schedule to calculate the Utah
rate QFT for the purpose of fi guring the tax and fi ling this
tax for each QFT using the 5% tax rate for each QFT.
return. Each benefi ciary’s share of the trust’s income is
Enter the sum of the tax for all QFTs (after subtracting
determined in accordance with the benefi ciary’s inter-
any estate or trust tax credit) on line 22.
est 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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