Page 251 - Individual Forms & Instructions Guide
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
A U.S. person who transferred prop- ule E to report the income you received. 2. You file your 2022 tax return and
erty to a foreign trust may have to report Instead, report it on Form 1040 or pay the tax due by March 1, 2023.
the income received by the trust as a re- 1040-SR, line 2b.
sult of the transferred property if, during Column (c). Report the total of the For details, see chapter 15 of Pub. 225.
2022, the trust had a U.S. beneficiary. amounts shown on Schedule(s) Q, Paperwork Reduction Act Notice. We
See section 679. An individual who re- line 2c. This is the smallest amount you ask for the information on this form to
ceived a distribution from, or who was are allowed to report as your taxable in- carry out the Internal Revenue laws of
the grantor of or transferor to, a foreign come (Form 1040, 1040-SR, or the United States. You are required to
trust must also complete Part III of 1040-NR, line 15). It is also the smallest give us the information. We need it to
Schedule B (Form 1040) and may have amount you are allowed to report as ensure that you are complying with
to file Form 3520. In addition, the owner your alternative minimum taxable in- these laws and to allow us to figure and
of a foreign trust must ensure that the come (AMTI) on Form 6251, line 4. collect the right amount of tax.
trust files an annual information return You are not required to provide the
on Form 3520-A. If the amount in column (c) is larger
than your taxable income would other- information requested on a form that is
wise be, enter the amount from column subject to the Paperwork Reduction Act
Part IV (c) on Form 1040, 1040-SR, or unless the form displays a valid OMB
control number. Books or records relat-
1040-NR, line 15. Similarly, if the
Income or Loss From Real amount in column (c) is larger than your ing to a form or its instructions must be
retained as long as their contents may
AMTI would otherwise be, enter the
Estate Mortgage Investment amount from column (c) on Form 6251, become material in the administration of
Conduits (REMICs) line 4. Enter “Sch Q” on the dotted line any Internal Revenue law. Generally,
to the left of this amount on Form 1040, tax returns and return information are
If you are the holder of a residual inter- 1040-SR, or 1040-NR, line 15; and confidential, as required by section
est in a REMIC, use Part IV to report Form 6251, line 4, if applicable. 6103.
your total share of the REMIC's taxable The time needed to complete and file
income or loss for each quarter included Note. These rules also apply to estates this form will vary depending on indi-
in your tax year. You should receive and trusts that hold a residual interest in vidual circumstances. The estimated
Schedule Q (Form 1066) and instruc- a REMIC. Be sure to make the appropri- burden for individual taxpayers filing
tions from the REMIC for each quarter. ate entries on the comparable lines on this form is included in the estimates
Do not attach Schedule(s) Q to your re- Form 1041. shown in the instructions for their indi-
turn. Keep it for your records.
Do not include the amount vidual income tax return. The estimated
If you are treating REMIC items on ! shown in column (c) in the total burden for all other taxpayers who file
your tax return differently from the way CAUTION on Schedule E, line 39. this form is approved under OMB con-
the REMIC reported them on its return, trol number 1545-1972 and is shown
you may have to file Form 8082. Column (e). Report the amount(s) next.
shown on Schedule(s) Q, line 3b.
If you are the holder of a residual in-
terest in more than one REMIC, attach a Recordkeeping . . . . . . . . . 3 hr., 39 min.
continuation sheet using the same for- Learning about the law or the
mat as in Part IV. Enter the combined Part V Summary form . . . . . . . . . . . . . . . 2 hr., 16 min.
totals of columns (d) and (e) on Sched- Line 42 Preparing the form . . . . . . 3 hr., 25 min.
ule E, line 39. If you also completed Part Copying, assembling, and
I on more than one Schedule E, use the Special estimated tax rules may apply if sending the form to the IRS . 34 min.
same Schedule E on which you entered you have gross farming or fishing in-
the combined totals in Part I. come. You will not be charged a penalty If you have comments concerning the
for underpayment of estimated tax if:
REMIC income or loss is not income accuracy of these time estimates or sug-
or loss from a passive activity. 1. Your gross farming or fishing in- gestions for making this form simpler,
come for 2021 or 2022 is at least we would be happy to hear from you.
Note. If you are the holder of a regular two-thirds of your gross income; and See the instructions for the tax return
interest in a REMIC, do not use Sched- with which this form is filed.
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