65 Day Rule For Trust Distributions 2025. Unlocking the Secrets of the 65Day Rule for Trust Distributions [IRC 663(b).] This rule applies to a complex trust; a simple trust where net income is required to be distributed to trust beneficiary yearly. For example, a distribution of $700 of trust income by the trustee to a beneficiary on January 20, 2025, can be treated as having been made in the 2024 tax year or the 2025 tax year
Required Minimum Distribution Relief for IRAs John McCarthy, CPA from johnmccarthycpa.com
To qualify, the distributions must be made no later than March 6, 2025, to count as a 2024 distribution and an election is required on the tax return to receive that tax treatment. This 65-day rule provides an opportunity to shift income out of a trust and to beneficiaries, even if those distributions are made outside of the 2024 calendar year
Required Minimum Distribution Relief for IRAs John McCarthy, CPA
The election is made by the trustee on the trust's tax return deadline of April 15, 2025, or September 30, 2025, for returns on extension. One of the tax planning tools available to fiduciaries of estates and non-grantor trusts is the 663 (b) election, also known as the "65-day rule." Simply put, a 663 (b) election allows distributions made to beneficiaries within 65 days of year-end to be counted as prior-year distributions. This 65-day rule provides an opportunity to shift income out of a trust and to beneficiaries, even if those distributions are made outside of the 2024 calendar year
65 Day Rule For Trusts Improve Your Tax Position Collins Law Firm. This 65-day rule provides an opportunity to shift income out of a trust and to beneficiaries, even if those distributions are made outside of the 2024 calendar year To qualify, the distributions must be made no later than March 6, 2025, to count as a 2024 distribution and an election is required on the tax return to receive that tax treatment.
New Tax Rules for Trust Distributions What You Need to Know HBA. The 65-Day rule may help reduce income taxes for certain trusts and estates In most years, including 2025, the last day to make a distribution count toward the previous tax year is March 6.