Hi,
If I gift $10000 to my family Ttrust and then distribute $10000 to myself, is this $10000 taxable?
Thanks!
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2 replies
Hey @xzhe0005
If the Trust distributes that 10K to you then it's no longer a gift.
This 10K would be income that you (the beneficiary) have received and therefore, be taxable.
Check out this link that talks about Trust income and how beneficiaries are taxed.
All replies
By gift I assume you mean lend and it is sitting in the accounts as a beneficiary loan? If the trust pays back the loan then it would not be taxable in your hands, any distribution of net income from the trust to you would be, however these are two separate things.
Hey @xzhe0005
If the Trust distributes that 10K to you then it's no longer a gift.
This 10K would be income that you (the beneficiary) have received and therefore, be taxable.
Check out this link that talks about Trust income and how beneficiaries are taxed.
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